Caretaker Finance Minister Boris Lalovac said on Wednesday the state purse was in a very good state and that he hoped the budget deficit would be below HRK 10 billion, less than the HRK 12 billion envisaged.
Speaking to the press before a government session, he recalled that last year's deficit was HRK 16 billion. "I think that according to the cash principle, public finances have made a certain step forward, but it will be necessary to generate a higher primary surplus."
Asked about today's minimum wage increase of three percent, Lalovac said the average monthly salary was HRK 5,500 but that it did not reflect the real state of affairs. "Most citizens have salaries from HRK 2,000 to 3,000-4,000. I hope this small minimum wage increase will make it easier for citizens. Any small step forward in consumption means a better GDP."
Lalovac said he hoped the new government would continue to reduce the income tax. This year the non-taxable part of income was increased, resulting in higher net salaries, consumption and GDP.
Deputy Prime Minister Branko Grcic said this was the third minimum wage increase by the outgoing government.