Finance Minister Marko Primorac estimated on Friday that the announced tax reform would cost the state budget €400 million annually.

He said the estimate included an increase in the non-taxable income and expenditures in the pension system.

The estimate does not include how much local government units might reduce the income tax rates, he said, adding that the tax reform will be presented early next week, that nothing extraordinary has happened, and that there are no problems.

At today’s session, the government formulated a revision of this year’s budget revision, increasing revenues by €1.7 billion to €26.6 billion and expenditures by €1.4 billion to €28.1 billion.

Primorac said the revision was technical and that the next one could be expected in the autumn.

The government’s aid package for households and businesses from April is in force through September and if the situation remains uncertain, the government will adopt a new package, he said, adding that it will also be necessary to reallocate the rest of the additional profit tax revenue.

There are also the negotiations with unions on pay rises and this budget revision does not include them because how much wages will rise and at what pace is not known, Primorac said, adding that the next budget revision will be announced once all that is known.