Budget revenues in the first two and a half months of this year were HRK 21.5 billion, an increase of 6.6% over the same period of last year, while expenditures declined by 2.5% to HRK 25.9 billion, according to figures released by the Ministry of Finance on Tuesday.

The figures showed that in the period from January 1 to March 16, budget revenues were about HRK 1.3 billion higher than in the same period of 2011, while expenditures were down by HRK 644 million. Expenditures were HRK 4.4 billion higher than revenues, while at the same time last year expenditures were HRK 6.4 billion higher than revenues.

Tax revenues amounted to HRK 11.2 billion, up 7.9% year on year. VAT revenues increased 6.2% to HRK 6.8 billion, while profit tax revenues rose by as much as 32.2%, reaching HRK 1.3 billion.

Although excise tax revenues went up by HRK 55 million to HRK 1.9 billion, revenues from excise taxes on oil products declined by HRK 78 million, while revenues from excise taxes on tobacco products increased by HRK 135 million. The decline in revenues from excise taxes on oil products was due to a decline in consumption following price increases.

Revenues from contributions totalled HRK 8.6 billion, an increase of 0.5% year on year. Expenditures on employees went up by 2.4% to HRK 5.5 billion, while material expenses dropped by 2.3% to HRK 1.8 billion.

The Tax Administration received 959 applications for rescheduling tax debts, totalling HRK 3.25 billion. At the end of January, 71,874 business enterprises had their accounts frozen because they had failed to meet their financial obligations, amounting to HRK 41.69 billion.