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In first two months, deficit was already at HRK 3bn, mainly due to lower revenue from crisis tax.

Economic analyst, Ante Babić, warns that if fiscal policy is not altered, budget deficit will be HRK 10bn more than planned HRK 8.6bn.

"I do not take the minister seriously when he says budget will not be revised, as this will surely be the case", Babić says, adding that the same happened last year when three rebalances were done.

His colleague from Hypo bank, Hrvoje Stojić, agrees and argues for reforms. According to him, 2010 budget will be revised after Q1 report. Without one, budget deficit will climb to HRK 17bn.

Meanwhile, chief economist at SG Splitska banka, Zdeslav Šantić, warns that public spending has not constrained yet.

"When 2010 budget was adopted, experts warned that economic downturn will continue this year with a drop in personal spending, which will lower tax revenue. At the same time, budget expenditure keeps increasing due to unfavorable structure of public spending", Šantić explains.

Therefore, it is crucial for the rebalance to inspire structural changes as a drop in revenue is already certain.