He was speaking to the press after the opening of the international conference "Demographics, Jobs and Growth: Navigating the Future in Central, Eastern and Southeastern Europe".
"Despite that relief, there is a budget surplus. With all the trends, we will try to have a surplus also this year. We'd like the surplus to become the rule. As a government we spend as much, even less, than we earn. Therefore we are managing well and we have stopped the trend of borrowing. I believe these effects will have positive consequences for the Croatian economy and budget," Plenkovic said.
As for the impact of a general VAT cut which goes into force on January 1, he said everyone in the system should be fair but that the question was whether they would be.
Asked if he had decided on new candidates for ministers, the prime minister said he would say so when he decided it was time.
Central bank governor Boris Vujcic said the impact of the general VAT cut from 25% to 24% could be assessed only as part of the Finance Ministry's whole tax package. "It's always good to go after direct taxes, which have a much more significant macroeconomic impact."
Text: Hina