The aim of the revision is to reduce fiscal deficit from 3.2 to three per cent of GDP and settle some major issues in the Health Ministry, Prime Minister Ivo Sanader said, adding that the revision took into account the good macroeconomic indicators and announcements of an economic growth higher than expected.
Finance Minister Ivan Suker said figures showing that this May there were 21,000 less jobless than in May 2005 indicated the national economy was lively.
He said budgetary revenue in this year's first five months was 12 per cent higher than at the same time last year.
Under the revision, budgetary revenue would amount to 94.89 billion kuna, up 7.3 per cent from last year, while expenditure would be 99.2 billion kuna, said Suker.
Of the 899 million kuna higher revenue, 413 million will be directed to cover budgetary costs and 486 million to reduce the deficit.
Both Sanader and Suker said the government had done everything possible to reduce the external debt.
The state's external debt has been reduced and the state has slowed down the growth of the overall external debt, Sanader said in reaction to yesterday's parliamentary debate on the central bank's annual report which was characterised by the issue of the external debt.
Suker said the revision would result in more funds for the Health Insurance Institute, the Development and Employment Fund, and the ministries of agriculture, justice, and science. The funds for some ministries will be cut, for example for the foreign ministry.
The new budgetary revenue is based on plans to achieve a real economic growth of 4.4 per cent.
(EUR1 = 7.25 kuna)