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Finmin says budget revision to ensue after talks with coalition partners

Autor: mses
ZAGREB, Aug 10 (Hina) - As for a budget gap of HRK 8 billion, the government will decide on how to cover it this autumn after talks with partners in the ruling coalition, Finance Minister Ivan Suker told the national broadcaster's (HTV) prime time news-programme on Tuesday evening.

"We are still analysing what is the best to do at this moment," Suker said adding that more details about how to close the budget gab would be known after talks with coalition partners.

He recalled that the gap could be covered by new borrowing and deficit increase, by assets' sale or by expenditure reduction.

Tourist trade turnover cannot compensate for all budget deficits, as only a part of the mentioned EUR 6.5-billion volume of that turnover will end up in the state budget, he said.

Suker declined to comment on announcements by some analysts that Croatia might emerge from recession in the third quarter of this year, although projections envisage the annual GDP fall of 1.5 percent by the end of this year.

"Generally speaking, the situation is not so desperate, and 2011 should be definitely the year of Croatia's economic upturn," the minister said.

He dismissed speculations of food price hikes of up to 30 percent as overblown.

He announced the next meeting of the government for 19 August.

(Hina) ms

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