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Government adopts report on execution of national budget in year's first half

ZAGREB, Aug 3 (Hina) - The government is more than satisfied with the positive macroeconomic indicators in this year's first half, Finance Minister Ivan Suker said on Thursday at a session at which the government adopted a report on the execution of the national budget in said period.
ZAGREB, Aug 3 (Hina) - The government is more than satisfied with the positive macroeconomic indicators in this year's first half, Finance Minister Ivan Suker said on Thursday at a session at which the government adopted a report on the execution of the national budget in said period.

Revenue was 11.1 per cent higher, amounting to 43.9 billion kuna, 4.4 billion more than in the corresponding period in 2005.

Everything indicates that July's results will be even better, Suker said, adding the positive trends had reduced the budgetary deficit, which at the end of June was 3.08 billion kuna lower than last year.

Economic growth in this year's first three months was six per cent, industrial output continued to grow throughout the first half of the year, and the unemployment rate was 16 per cent, the lowest in the past seven years, with 23,131 fewer jobless than at the end of 2005.

This year's first half also saw exports growing higher than imports, and in the first four months of the year the state reduced the external debt by EUR564 million.

Faster economic growth and deficit reduction are the key guidelines of the economic and fiscal policy in the 2007-09 period, about which the government was briefed today.

Suker said the government estimated economic growth to be 4.5 per cent in 2007 and five per cent two years later, while the deficit was expected to drop to 2.4 per cent in 2009.

The government will continue to bring order into public finance and will increase salaries in the public sector in 2007 by five per cent.

The government endorsed a strategic framework for economic development until 2013, whose key goal is to raise the living standards of all citizens. The starting points of the document are openness of the economy, competitiveness, employment, and participation of the whole society in economic growth. The foundations of development in the next seven years are human resources, knowledge and education, and social fairness.

Also today, the government set aside 26.3 million kuna for Bosnian Croats' projects in culture, education, science and health.

The government also accepted an invitation and confirmed Croatia's participation at EXPO 2010 in Shanghai.

(EUR1 = 7.25 kuna)

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