A state secretary at the Financial Ministry, Martina Dalic, said that progress was made in fiscal policy last year and that the growth of the external debt, which in 2003 rose by 15.5 percent of Gross Domestic Product and last year by 4.5 percent, was slowed down.
The balance of payments deficit was reduced from 6.8 percent of GDP in 2003 to 4.7 percent in 2004, while state budget deficit went down from 3.8 percent of GDP to 2.9 percent.
State solvency went up, the primary deficit was reduced and state savings increased, namely the current surplus went up from one percent of GDP in 2003 to 2.1 percent in 2004 (up by some four billion kuna), Dalic said.
Budgetary revenue in 2004 amounted to 80.7 billion kuna, which is 7.7 percent more than in 2003. Operational revenue amounted to 80.4 billion kuna, most of which (58.2 percent) came from taxes. Operating expenses, however, amounted to 83.204 billion kuna, which is 1.945 billion more in relation to the 2004 budget revision.
Most of this amount was earmarked for the reconstruction and modernisation of Croatian Railways, while the rest went into salary increase, contributions and programmes aimed at stimulating employment and development of companies.
Parliamentary deputies are now debating the draft annual financial statement of the 2004 budget.