GOV'T UNHAPPY WITH FINANCIAL LIABILITIES LEFT BEHIND BY FORMER AUTHORITIES

ZAGREB, Jan 22(Hina) - The financial liabilities the former authorities have left to the incumbent government automatically reduce its possibility to encourage the economy and social programmes, Finance Minister Ivan Suker said on Thursday.#L# Had all the financial liabilities been included in last year's budget, the central government's deficit would be 13 billion kuna (EUR1.7 billion), or 6.8 percent of GDP instead of the current 8.6 billion kuna (EUR1.1 billion), or 4.5 percent of GDP, Suker said. At today's government session, the ministers reported about the transfer of duty in their departments, financial liabilities, and appointments made between October 20, when parliamentary elections were called, and November 23, when they were held, as well as between election day and the inauguration of the new government. Prime Minister Ivo Sanader said it was impermissible for a government to adopt decisions on financial commitments and personnel changes after elections were called, and particularly after they were held. In that period of time a government has to carry out technical duties, he said, adding that this issue would be regulated by a law on the transfer of authority, which the government has bound the Central State Administration Office to draw up. Health Minister Andrija Hebrang said the government would have to postpone some projects for several years due to debts in the health sector, such as the building of a new hospital in Zagreb and the advancement of health care on islands. He reiterated the debt in the health sector totalled 7.3 billion kuna (EUR948 million) and that the ministry had okayed the employment of 460 workers after elections had been called. Most ministers did not have complaints about personnel changes in their departments. Complaints were voiced about financial decisions. (Hina) ha sb