With regard to public finances, Minister Zdravko Maric pointed out the reforms in his sector would go in two directions - further reinforcement of the budget framework and planning and the continuation of the tax reform.
Taxes and the administrative burden will be further reduced, Maric said, announcing the preparation of a draft set of pertinent measures until summer recess so that the necessary legislation could be adopted in the autumn and go into force as of 1 January 2019.
The reform programme envisages the strengthening the State Audit Office and the adoption of new fiscal responsibility legislation and a new budget law by the end of this year.
In response to questions from the press, Maric said that the programme did not include plans for introducing a property tax.
A tax of this kind has not been on the agenda since last year, and the intention is to advance the system of collection of utility fees (municipal taxes), Maric explained.
Comprehensive pension reform to be on agenda
Labour and Pension System Minister Marko Pavic said that the planned overhaul of the pension system was to make it sustainable.
Explaining why it was necessary to extend working life, Pavic says that only 1 in five retirees (19%) have worked full years of service (40 years) before retiring.
Furthermore, Croatia's pensioner-to-worker ratio is a mere 1:1.19, he underscored.
The minister announced the overhauling of the Employment Agency, with focus being on measures to deal with those who have been out of work for a long time. A total of 13 billion kuna from the European Social Fund has been made available to Croatia to address the marginalised on the labour market.
Text: Hina