ZAGREB, February 3, 2020 – The City of Zagreb ran a budget deficit of about 400 million kuna in 2019, while the deficit carried over from the previous period is 628.9 million kuna, the city’s Finance Office said in a statement on Monday, noting the negative impact of tax reforms on the city’s revenues.
The statement came after Jutarnji List newspaper said on Monday that the head of the Finance Office, Danijela Juroš Pečnik, had warned the city government in a letter last week that the city’s budget deficit exceeded 1 billion kuna last year.
The Finance Office said that it was an internal document normally sent to the heads of city administrative bodies to “achieve better budget discipline.”
The annual financial report for 2019 has not been finalised yet, and the deficit is estimated at 400 million kuna, while the deficit carried over from the previous period is 628.9 million kuna, the statement said.
“In accordance with rules governing budget accounting, a deficit can be covered successively over a longer period of time. The deficit of 628.9 million kuna carried over from the previous period is envisaged to be covered from the projected budgets for 2021 (253 million kuna) and 2022 (375.9 million kuna),” it said.
The Finance Office said that after determining the final result for 2019 the City would analyse the financial situation and causes of the deficit, define measures to ensure stable and sustainable business, and consider measures to increase revenues, improve collection of claims and streamline the business.
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