The deficit is in line with projections for last year, reflecting the continuation of significant fiscal consolidation. Compared to 2003, the fiscal deficit dropped by as much as 3.2%.
Compared to 2005, last year's deficit dropped by 1.1% or almost two billion kuna, which is the result of positive developments both in terms of revenues and expenses.
According to preliminary data, the general government revenues amounted to 112.2 billion kuna, while expenses totalled 119.6 billion.
The revenues were one billion kuna higher than planned and 8.9% higher than in 2005, while the expenses were 7.2% higher.
Social benefits accounted for the largest share of government expenditure, 44.8 billion, followed by payments to workers, 28.2 billion, and payments for the use of goods and services, 13.3 billion kuna.
(1 euro = 7.4 kuna)