The GSV recommends that the government consider possibilities to establish fiscal consolidation, encourage economic growth and protect the most vulnerable citizens, Labour and Pension System Minister Mirando Mrsic said.
Next year's draft budget is technically correct, but the Croatian Employers Association (HUP) believes "the complete economic policy should go in another direction," with stronger efforts by the government and the finance and economy ministries, said Bernard Jakelic of HUP.
He said the economic growth predictions were too ambitious, too optimistic and hard to achieve, notably in light of higher expenditures for those employed and too few incentives for the economy.
Jakelic said employers cannot endorse a VAT increase from 10 to 13 per cent for tourism, which would make Croatia the least competitive destination.
Union representative Damir Jakus said the incumbent government did not have the possibility to encourage economic growth. "We ask that it put the budget in the function of those who commission work. But we can't see that in this budget."
Unions believe that some government measures, such as lower taxes for the business sector, had not created jobs or preserved economic activity, he said, adding that a budget that was not development-oriented was not good.
Jakus said unions would like to know how many budget revisions there would be next year and what the revenues would be.
Minister Mrsic said the social partners had expressed confidence in the government to draw up a budget sustainable in the long term, which was stated in the 2015 and 2016 projections.
Jakus said that the support was not unreserved and that every policy should be discussed.
The GSV also took note of amendments to the laws on VAT, profit tax, income tax, and contributions.
Speaking to the press after the GSV session about the finance minister's announcement that a real estate tax would likely be imposed next year, unionist Vilim Ribic said this tax was acceptable only if it was socially fair.
Jakus agreed. "We are for taxing the rich, to tax what isn't necessary to ensure normal living standards, but we cannot accept that we all have to pay because of the lack of funds in the budget."
Jakelic said HUP was generally against higher taxes "because they will affect consumption, without which we won't achieve the planned economic growth."