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Finance minister announces increase in pension benefits

ZAGREB, Sept 7 (Hina) - Finance Minister Ivan Suker said at a meetingof the Economic and Social Council on Wednesday that next year theamount of money intended for the payment of pension benefits would beincreased by 1.5 billion kuna, or six per cent, in accordance with theguidelines of economic and fiscal policy for the 2006-2008 period.
ZAGREB, Sept 7 (Hina) - Finance Minister Ivan Suker said at a meeting of the Economic and Social Council on Wednesday that next year the amount of money intended for the payment of pension benefits would be increased by 1.5 billion kuna, or six per cent, in accordance with the guidelines of economic and fiscal policy for the 2006-2008 period.

He added that wages paid from the national budget would increase by 929 million kuna or three per cent compared to this year.

Suker went on to say that the government's aim was to achieve economic growth of 4.4 per cent of GDP in 2007.

Ivica Mudrinic, chairman of the Council and representative of the Employers' Association, supported the measures proposed by the government, saying that they were necessary for the economic development of the country.

Mudrinic urged the government to act with greater determination, complete the fiscal, judicial and state administration reforms and crack down on corruption.

The trade union representative on the Council, Vilim Ribic, called for a change to wages policy and for the adoption of a national agreement on wages policy. He said that the state administration and public services were inefficient and unable to implement the required reforms owing to low wages.

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