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Minister says budget has its historical, demographic and transition problems

ZAGREB, Nov 21 (Hina) - Finance Minister Ivan Suker has said that the draft budget for 2011 has its "historical, demographic and transition problems" and consequently its structure is "such as it is".

"If the payment of salaries, pensions, children's allowances and social benefits is foolishly spent money, critics should say that publicly," the minister said in his interview with the commercial Nova TV on Sunday evening.

He admitted that in the event that budget revenues were not collected as planned, a decision should be made either to cut entitlements or reduce the fiscal deficit.

"Before the crisis, Croatia's public debt was below 40 percent (of Gross Domestic Product), and today it is about 40 percent, without the debt of units of local self-government and their public companies," the minister said responding to criticism about a rising public debt.

Suker described his cooperation with the Croatian National Bank (HNB) Governor Zeljko Rohatisnki as good, and said that next Wednesday he would acquaint the HNB Council with the budget projections.

"The governor is pursuing a monetary policy which we support," the minister said.

According to Suker, the current number of the jobless and pensioners is a result of the processes having lasted in Croatia for 20 years and only 12 percent of pension recipients are pensioners with full years of service.

He said this government had made some painful cuts such as the restriction of consumption.

He said that the new legislation on fiscal responsibility, which is now before the parliament, would change some habits in Croatia.

We have been awarded high marks by European Commission representatives for the public finance management, and I am only one of the factors in a series of processes in the state. I do my job well, given the circumstances, Suker told the television.

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