Suker said expenditure would amount to 108.1 billion kuna, 8.8 billion more than in this year's budget, while revenue would amount to 103.5 billion kuna, 8.6 billion more than this year.
He said the government had drafted the budget in accordance with positive macroeconomic indicators -- a 4.6 per cent economic growth, a 2.8 per cent general government deficit share in the GDP, a further reduction of the growth of the external debt, a reduction of the general government's share in the external debt to below 40 per cent of GDP, and reduction of unemployment.
The minister said the government would continue to fight against the grey economy, improve the supervision of taxpayers and collection of tax revenue. The collection of tax revenue in this year's first 11 months had gone up 10.5 per cent from last year, he added.
Speaking of spending, Suker said the draft budget reflected the government's goals to encourage entrepreneurship and a positive business climate as well as invest in science and education.
The Science and Education Ministry would receive 10.4 billion kuna, up 9.3 per cent from this year, said Suker.
He said the government had called the 2007 budget the budget for a more balanced development of Croatia, highlighting a bill under which income tax revenue would go in full to local and regional self-government units and two million kuna to be set aside for former war-hit areas and the islands, 946 million kuna more than in this year's budget.
Suker said 3.5 billion kuna would be set aside for population policy, 731 million more than this year, and that more funds would be allocated for child-rearing.
He said the draft budget also saw to the financial implementation of projects aimed at drawing money from EU pre-accession funds, estimating that 90 per cent of money from three such funds would be used in 2007.
Speaking of revenue, Suker said the government expected 37 billion kuna from VAT, 36 billion from profit tax, nine billion from income tax, and another nine billion from excise taxes.
The minister dismissed speculation that the draft budget did not state the expenditure in full and that some costs were covered up because of parafiscal financing. He said the government was complying with all of its obligations and that this was recognised by Croatia's increased credit rating with the world's leading agencies.
Parliament speaker Vladimir Seks said that amendments to the draft budget could be submitted until Friday afternoon so that the amendments and the draft could be discussed and put to the vote on December 1.
(EUR1 = 7.36 kuna)