The increase in revenue will make it possible for the government to direct HRK 1.1 billion at reducing the deficit to HRK 3.5 billion, or 2.6 per cent of Gross Domestic Product.
Prime Minister Ivo Sanader reiterated that his government was firmly committed to reducing the deficit. "We want to reduce the deficit to zero over the next two years," he said at a government session.
Sanader announced the government would increase unemployment benefits from HRK 1,000 to 1,200 as of October 1 this year.
Finance Minister Ivan Suker said that in the first half of this year budget revenue was HRK 2.5 billion higher than planned as a result of economic growth, improved collection and increased employment.
Suker said that economic growth in the first quarter was seven per cent and that the growth rate in the first half of the year was expected to exceed six per cent.