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Finmin informs Economic and Social Council of 2007-2009 fiscal policy

ZAGREB, Aug 24 (Hina) - Croatian Finance Minister Ivan Suker on Thursday notified the Economic and Social Council (GSV) of guidelines for the implementation of the Government's economic and fiscal policy for the 2007-2009 period.
ZAGREB, Aug 24 (Hina) - Croatian Finance Minister Ivan Suker on Thursday notified the Economic and Social Council (GSV) of guidelines for the implementation of the Government's economic and fiscal policy for the 2007-2009 period.

After the GSV session, Ivan Tomac, the Council chairman and a representatives of trade unions in this body, said that the presented guidelines were a good basis for further discussions.

Deputy Prime Minister Jadranka Kosor, who co-chairs the Council, reiterated that the Ivo Sanader Cabinet would stick to a proposed five-percent pay rise during negotiations on the matter that should start early next month.

Minister Suker said that funds for the payment of pensions should rise from 28.3 billion kuna this year to slightly over 30 billion kuna in 2007.

Funds to be allocated to the public health sector would rise from 14.4 to 15.2 billion kuna.

Suker expressed confidence that the mini-reform in this sector would result in its stabilisation.

The Finance Minister recalled that a basic prerequisite for the fiscal projections in the coming three years was accelerated economic growth.

A rise of 4.5 percent in economic growth is projected for this year, with a five-percent rise in 2009.

He projected a 6.2 percent rise in revenues in 2007, 6.6 percent in 2008 and 6.2 percent in 2009 year on year.

Suker announced a gradual reduction of the inflation and the further implementation of fiscal adjustment with the reduction of the general government deficit. All macroeconomic indicators and budgetary earnings show that this year's deficit of three percent would be achieved as projected.

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