The revised budget envisages 1.7 billion kuna for the health sector, of which 1.2 billion will be spent to settle financial obligations. Another 500 million kuna will be set aside from the budget for the health sector, Finance Minister Ivan Suker said.
Later this week the schedule of payments to wholesale drug stores will be agreed, and all financial obligations in the health sector will be settled. In the next three to four months, health spending will be monitored and those in charge of the sector will propose appropriate measures, Suker said.
He said that the aim of the revised budget was to deal with inherited problems, including lawsuits filed by civil servants over the violation of collective agreements during the term of the previous government.
The funds intended for the Ministry of the Interior will be increased by 350 million kuna due to lawsuits filed over the failure to pay pension and health insurance and overtime, and over the violation of the Law on Areas of Special State Interest.
The Ministry of Science and Education will be granted an additional 290 million kuna for its new projects introducing free textbooks and transportation for secondary school students. The Agriculture Ministry will get an additional 250 million kuna.
Suker said that the budget of the Regional Development Fund would increase as well, and that the government would secure an additional 114 million kuna for the implementation of the Environmental and Fisheries Protection Zone (ZERP).
Deputy PM Jadranka Kosor said that the revised budget envisaged an additional 143 million kuna for an increase in the material rights of civil servants. Funds amounting to 107 million kuna have been ensured for child allowances, and funds have been ensured for veterans' rights, Kosor said, adding that the government would today send the revised budget to parliament.
The revised budget is aimed at further reducing the fiscal deficit and lowering the state deficit to 2.6 percent of GDP, Suker said.
The revised budget follows announcements by the Prime Minister and leader of the Croatian Democratic Union (HDZ), Ivo Sanader, that in two to three years the deficit of the central government budget would be reduced to zero or even turn into surplus, Suker said.
Suker recalled that the economic growth in the first three months of this year was seven percent and that all economic indicators showed a strong growth in the second quarter as well.
Ivica Mudrinic said the Croatian Employers' Association (HUP) supported the proposed budgetary revision, adding that it was principled and would further boost economic activity.
The leader of the Croatian Trade Union Federation (HUS), Ozren Matijasevic, said he was satisfied that the GSV had accepted three bills that would solve the problems of workers affected by asbestos.