Deputy Prime Minister Grčić: Budget deficit reduced by HRK 2.5 billion

The Deputy Prime Minister and Minister of Regional Development and EU Funds, Branko Grcic, said on Friday that there were signs of economic recovery, citing the reduction of the budget deficit as one of the positive developments.

According to initial results, the budget deficit in the first four months of the year was 2.5 billion kuna lower than at the same time last year. Grcic said that this was mainly due to increasing revenues from VAT and profit tax.

"VAT revenues continued to increase in April too and by now they are 1.5 billion kuna higher than at the same time last year," told the press after a panel on economic growth in the northern coastal resort of Opatija. He noted that this showed that economic activity in Croatia was definitely on the rise.

Grcic said that the VAT revenues generated in April alone were 500 million kuna higher than in April last year. "Now it's quite clear that this was due to the increase in personal consumption for eight consecutive months," he added.

Grcic said he was glad that revenues from profit tax had increased by 200 million kuna, or by 6-7% from the same time last year, and that this also reflected a rise in the profitability of enterprises in 2014.

Grcic said that the very good trends from 2014 had continued, as shown by a rise in exports of as much of 7.5% in the first quarter of 2015.

(EUR 1 = HRK 7.58)

HINA

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