July 27 (SeeNews) - Croatia's first half central government budget deficit narrowed 68% on the year to 2.4 billion kuna ($352.8 million/320.6 million euro), equivalent to 0.7% of GDP, the country's prime minister said on Wednesday.
Total budget revenues increased by an annual 10.5% to 56.3 billion kuna through June, while spending edged up 0.4% to 58.6 billion kuna, PM Tihomir Oreskovic said during a regular government session aired live by broadcaster HRT.
He noted that Croatia's GDP is expected to expand by 2.5% this year, up from the planned 2% growth.
Revenues from privatisation, meant to trim the country's large public debt, which reached 86.7% of GDP at end-2015, reached 400 million kuna in January-June, while the planned sale of state stakes in hotel operators Suncani Hvar and Imperial could bring in a further 400 million kuna, Oreskovic added.
Croatia's government targets a budget deficit of 7.5 billion kuna this year. In 2015, the shortfall narrowed to 6.3 billion kuna from 11.6 billion kuna a year earlier.
(1 euro=7.48554 kuna)