ZAGREB, Aug 4 (Hina) - The filling of the state budget is expected to become increasingly better by the end of this year, especially in July. Data indicate economic growth and a better influx of revenues from the Value Added Tax,
Deputy Finance Minister Mijo Jukic told reporters following Wednesday's session of the Government, which adopted a report on the execution of the state bugdet in the first six months of 1999. According to Jukic, the results were particularly good regarding customs revenue, which is expected to exceed expectations. It is also expected that the budget will be filled also through the privatisation of the Croatian Telecommunications (HT) and 'Croatia osiguranje' insurance company. Jukic did not want to comment on the value of the revenue from privatisation, adding it was difficult to predict. Speaking about the possible development of the 1999 budget, compared to the first five month
ZAGREB, Aug 4 (Hina) - The filling of the state budget is expected to
become increasingly better by the end of this year, especially in
July. Data indicate economic growth and a better influx of revenues
from the Value Added Tax, Deputy Finance Minister Mijo Jukic told
reporters following Wednesday's session of the Government, which
adopted a report on the execution of the state bugdet in the first
six months of 1999.
According to Jukic, the results were particularly good regarding
customs revenue, which is expected to exceed expectations.
It is also expected that the budget will be filled also through the
privatisation of the Croatian Telecommunications (HT) and 'Croatia
osiguranje' insurance company.
Jukic did not want to comment on the value of the revenue from
privatisation, adding it was difficult to predict.
Speaking about the possible development of the 1999 budget,
compared to the first five months, Jukic said the policy as
envisaged by the budgetary revision was being implemented. He added
the budgetary revenue in the first six months was lower by 16.7 per
cent, whereas spending was increased by 5.7 per cent in relation to
the same period last year.
Jukic said the privatisation of Croatian banks should start by the
end of this year, adding, though, it was more realistic to expect it
in the first quarter of 2000.
He declined to comment on requests that the VAT rate be reduced. "We
have already commented on that issue", he said.
Tourism Minister Ivan Herak, who recently demanded that the VAT
rate for tourism be cut, told reporters today's government session
did not discuss that issue.
I believe the Government is heading toward a reduction of the VAT
rate, not only in tourism, he said.
Herak believes there are no obstacles to reducing the VAT rate for
tourism. As regards sources for compensating for these cuts, Herak
said the state was already giving tourism six to seven per cent of
its revenue through subsidies.
Tourism turnover is expected to increase by 10 to 15 per cent next
year, which, along with the already mentioned sources, will help
compensate for the reduced VAT rate, the Tourism Minister said.
Herak believes reducing the VAT rate would help reduce hotel prices
and increase Croatia's competitiveness in the international
market.
Speaking about the same topic, Defence Minister Pavao Miljavac, who
chaired today's session, said it was up to the Government to decide
about the reduction of the VAT rate, adding the matter required a
thorough analysis.
(hina) rml