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PM Sanader says 2007 projected budget has five objectives

ZAGREB, Nov 13 (Hina) - The draft 2007 state budget has five main goals including the investment in Croatia as a knowledge-based society, the continuation of infrastructure projects, the maintenance of the current level of social benefits, a five-percent increase in salaries in the state sector with the further reduction of the budgetary deficit, Croatian Prime Minister Ivo Sanader said on Monday at the margins of an Information Communication Technology (ICT) Forum in Zagreb.
ZAGREB, Nov 13 (Hina) - The draft 2007 state budget has five main goals including the investment in Croatia as a knowledge-based society, the continuation of infrastructure projects, the maintenance of the current level of social benefits, a five-percent increase in salaries in the state sector with the further reduction of the budgetary deficit, Croatian Prime Minister Ivo Sanader said on Monday at the margins of an Information Communication Technology (ICT) Forum in Zagreb.

The premier attended the forum at the invitation of the event's organisers: the Croatian Employers' Association, the Croatian Chamber of the Economy and the Central State Administrative Office for e-Croatia.

Commenting on the projections for the next year's budget, Sanader said the first objective would be to invest in Croatia as a knowledge-based society and the second objective would be to continue constructing state roads and highways and a network of gas pipelines.

The third objective is to maintain the current social benefits and the fourth one is to raise salaries in the state sector by five percent, Sanader said adding that he hoped that trade unions would accept the proposal.

The last but not the least is that the government is planning to cut the budgetary deficit to 2.8 percent of Gross Domestic Product in order to meet Maastricht Criteria, the premier said.

The proposed Croatian state budget for 2007 will be around 108 billion kuna, while the 2006 budget was 98.8 billion kuna.

With the planned decentralisation of income tax revenues, local government units should receive between 800 and 900 million kuna more than before. The government is expected to finalise its 2007 budget proposal this week and send it to Parliament for adoption.

Later on Monday the Economic and Social Council is expected to discuss the matter.

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