Healthcare and pensions considered main culprits for deficit

Health care and pensions that have cost the state budget 1.6 billion Euros so far this year are seen as the main culprits for the budget deficit totalling 8.6 billion kunas (1.2 billion Euros), or 2.6 per cent of the gross domestic product (GDP).State revenue during the first eight months of the year was 70.8 billion kunas (9.7 billion Euros), while expenditures was 79.4 billion kunas (10.9 billion), Ministry of Finance data show.In the first eight months of the year, the state collected 2.4 per cent more VAT taxes, a signal of a slight increase in consumption.  Excise-tax revenue grew by 38.8 per cent, while income-tax revenue decreased by 11.5 per cent. Corporate income-tax revenue fell by 33.9 per cent, the daily Vecernji List has reported.

Source: Croatian Times Online News