The budget revision brings the continuation of the economic policy pursued so far, and the government will have to continue borrowing to finance current expenses, leaders of the national employers' association HUP said after talks with Prime Minister Jadranka Kosor on Tuesday, at which she acquainted them with the government's draft budget revision.
A member of the HUP Executive Board, Ivica Mudrinic, said HUP had not taken part in the drafting of the budget revision and only took note of it today.
"The government has managed to save some money by cutting its expenses, but we still have to borrow money in order to finance the state's current expenses," Mudrinic told reporters after talks at the government headquarters.
He added that the budget revision as proposed by the government was no surprise considering the lack of "maneuvering space" resulting from failure to carry out reforms and cut spending in recent years.
"At this moment, it is technically right, but is not signalling any turnaround. We hope the government will start dealing seriously with how to boost investment in order to jump-start the economy and ensure at least the beginning of economic growth and recovery."
When asked to comment on the government's plan to increase excise duties, Mudrinic said that any new tax was a burden, but that it was good that excise taxes on diesel fuel would not be increased considering the fact that it was the main type of industrial fuel.
HUP president Damir Kustrak, who expressed satisfaction that there would be no drastic rise in taxes, said that today's meeting focused on the need for the government to support private investments.
Private investments, along with sensible public spending, are the only thing that can help the country overcome the crisis, Kustrak said.
Later in the day, the government was expected to formulate a draft budget revision for this year and send it to parliament for consideration.
