He criticised the government for failing to cut costs and relax taxation after the cabinet led by Prime Minister Jadranka Kosor envisaged revenues in the amount of HRK 107.4 billion and expenses in the amount of HRK 122.3 billion in the next year's budget. The budget deficit would thus amount to HRK 14.8 billion.
The trade unions have not been acquainted with the draft budget which shows that the government does not care much about social partners, Matijasevic said.
Vilim Ribic, leader of the public sector workers' trade union (Matica Hrvatskih Sindikata), said that this was probably the only possible draft budget which the government was able to draw up.
They have frozen pensions, and salaries in the public sector have been frozen since May last year under our agreement with the government. Therefore, the International Monetary Fund should not come to Croatia to freeze salaries, Ribic said.
It is unclear why the government has done nothing on the revenues side, Ribic said, calling for higher taxes on the highest salaries and for the introduction of tax on capital gains and wealthy inheritance.