Statement of the Deputy Prime Minister and Finance Minister, Mr. Igor Lukšić, PhD., on the occasion of determining the Proposal of the Law on Amendments to the Law on Personal Income Tax, Proposal of the Law on Amendments to the Corporate

. The current budget will amount to 651.46 million Euros, and the debt financing is of around 128 million Euros. The amount of the Capital Budget is 121 million Euros, which is by nine million less in this year. State owned Funds expenditures amount to 527.61 million Euros. One the data are consolidated, this budget will be at the level of about 40% of estimated GDP. A moderate recovery of economy is planned of 0.5%, which means stagnation. We are reviewing a probability of having a budget deficit of around -2%, which is in accordance with the IMF prospectus. Economic activity in recent months is indication that the economy in the next year should not suffer additional fall. We could hope for a recovery or stabilization. A plan for next year is that the Government enters the loan agreements worth 73.5 million Euros, for covering of deficit and debt servicing up to 200 million Euros, and to issue guarantees for loans worth 202 million Euros. It is certain that a one part of guarantee, primarily for KAP and Steel Mill will be transferred from this year to the subsequent year