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Finmin says 2006 budget is realistic and can be implemented

ZAGREB, Nov 22 (Hina) - A senior official of the ruling CroatianDemocratic Union (HDZ) and Croatian Finance Minister Ivan Suker onTuesday presented a draft 2006 budget at a news conference held in theHDZ main offices in Zagreb.
ZAGREB, Nov 22 (Hina) - A senior official of the ruling Croatian Democratic Union (HDZ) and Croatian Finance Minister Ivan Suker on Tuesday presented a draft 2006 budget at a news conference held in the HDZ main offices in Zagreb.

Macroeconomic indicators show that the state budget for 2006 is "realistic and can be implemented", Suker said, adding that the rate of economic growth would be four percent, with a three-percent inflation rate.

Suker recalled that the strategic objectives of the Ivo Sanader cabinet were to cut the high external debt and the balance of payment deficit.

The structure of the budget is such that three expenditure items, namely pensions, health care and salaries, account for 72 percent of the budget.

The government has succeeded to make fiscal adjustments of 3.3 percent without increasing any tax in 2006, Suker added.

He announced that the government was planning to cut the general government deficit to 3.3 percent next year.

According to him, it is not exaggerated to expect a 6.5-percent rise in budget revenues in 2006.

"We are planning a 4.34-percent rise in budget expenditure, which is a requirement for curbing the state budgetary deficit within 3.3 percent," he added.

Asked when the government was planning to issue new bonds, Suker said that plans were reaching the final stage and that the government was now mulling whether to issue the bonds with an exchange clause or not.

Suker said that for the first time all revenues and expenditures linked to the budget were presented in the state budget.

The Croatian parliament began debating the draft 2006 budget on Tuesday afternoon.

Sabor Speaker Vladimir Seks said at the start of the debate that the budget could be adopted on Tuesday, 29 November.

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