A total of HRK 152 million of budgetary funds will be set aside for that purpose, and budget beneficiaries which have already given higher Christmas bonuses will have to adjust their decision to the government's decision, said Prime Minister Jadranka Kosor.

"All budget beneficiaries which have paid Christmas bonuses exceeding HRK 625 will have to adjust their decision to the government's decision. Budget beneficiaries cannot give Christmas bonuses before the government makes a decision on the matter. That was so in previous years, and it is so this year as well," said Kosor.

Finance Minister Ivan Šuker said the government's decision was in line with the country's financial capacity and "with what had been discussed with the social partners in July".

He recalled that HRK 63 million was paid for children's gifts, that holiday allowances were given on time, amounting to HRK 302 million, and that this year salaries in the school system were raised, which cost HRK 80 million.

Šuker dismissed claims that the government's decision on the Christmas bonus reflected negative economic trends or heralded an imminent bankruptcy of the state, saying that the government could not go beyond the set budgetary limits.

Šuker stressed that salaries for public and government sector employees had not been late this year, while in the real sector there were employees who were not sure if they would get their Christmas bonuses and salaries, or even keep their jobs.

He added that public and government sector employees were in a privileged position in relation to employees who had lost their jobs due to the global economic crisis.