Milanovic tells MPs deficit-cutting measures won't be an unpleasant surprise

Prime Minister Zoran Milanovic said in parliament on Wednesday that in a few days' time the government would submit to parliament measures designed to reduce the budget deficit, which it is required to send to the European Commission by April 21, adding that the MPs would "most definitely not be unpleasantly surprised by those measures".

Milanovic made the statement during Question Time after independent MP Jadranka Kosor warned him that the deadline for the submission of deficit-cutting measures to the EC would expire in three days. She asked if the parliament would discuss those measures and if there would be new cuts and budget revisions.

Milanovic responded that the parliament and public would be informed of the government's measures in a few days, underlining that the measures were not radical.

"We have protected the status of budget users and salaries as much as possible so as to avoid unrestricted reductions that would deal a blow to consumers and their purchasing power, which always reflects very quickly on GDP," he said.

Frano Matusic of the opposition Croatian Democratic Union (HDZ) criticised the PM for having boasted that the 2014 budget deficit would be 12 billion kuna, while current information indicated that it would amount to around HRK 18 billion.

"How is it possible to miss the amount by six billion kuna, will this year's budget have the same fate?" Matusic wanted to know.

Milanovic replied that Croatia was very close to primary surplus and "if it weren't for all the possible debts that we have, Croatia would practically have a budget surplus."

He added that the central government deficit was HRK 12 billion and that the government had saved three billion kuna.

"The same methodology is applied to every country and it increases every country's deficit," the PM said, adding that if the same methodology had been applied during the term of the previous, HDZ-led government, the deficit would have amounted to HRK 30 billion.

"So, the figures we stand behind are correct and money is being managed more rationally and responsibly," he told Matusic.

(Hina) rml

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