Grcic announces "correction" of excise duties in bid to make savings

Additional budgetary savings that should amount to 0.4% of Gross Domestic Product, that is to HRK 1.3 billion, as requested by Pierre Moscovici on Tuesday, will be achieved through "correction of some excise duties" and through the reduction of certain material expenses, said Grcic

Grcic said that wages, pensions and social benefits paid out from the state budget would not be touched. He, however, stopped short of specifying which excise duties might be raised, explaining that the government should first discuss the matter this week.

On Monday and Tuesday, Grcic and Finance Minister Boris Lalovac held talks in the European Commission to acquaint Commission officials with the next steps Croatia is to take to curb its excessive macroeconomic imbalances.

After meeting the two ministers on Tuesday, Moscovici described the "climate of the talks" as positive. adding that some more work needed to be done by next week, including additional fiscal efforts in the amount of 0.4% of GDP.

Moscovici underscored that the job on how to make additional savings of 0.4% of Croatia's GDP must be finalised by 21 April.

We must finalise the job as well as fiscal efforts that are necessary and we put them at some 0.4% of GDP and structural reforms so as to avoid the next state in the procedure of correcting macroeconomic imbalances. This is our common goal, Moscovici said explaining that those efforts must be defined by 21 April so that the Commission may have a correct projection and well-targeted recommendations.

Grcic said today that Croatia was not in a dramatic situation, reassuring that everything would be solved.

He also announced corrections in public companies' investments where every new investment is treated as "a debit" under the new methodology of defining the state deficit.

"It is vital to stabilise public companies' balance sheets," the deputy premier said.

He announced privatisation of some public companies that "have market potential to survive without state assistance", such as Croatia Airlines, but he ruled out privatisation of the water management and forest management companies.

(Hina) ms

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