ZAGREB, Feb 18 (Hina) - This year's budgetary expenditure is projected at 85.08 billion kuna, which is 5.7 percent more than in 2003, while current revenues are projected at 79.4 billion kuna, Finance Minister Ivan Suker said on
Wednesday evening, before a government session which is expected to define this year's draft budget.
ZAGREB, Feb 18 (Hina) - This year's budgetary expenditure is projected
at 85.08 billion kuna, which is 5.7 percent more than in 2003, while
current revenues are projected at 79.4 billion kuna, Finance Minister
Ivan Suker said on Wednesday evening, before a government session
which is expected to define this year's draft budget.#L#
The draft budget is based on the expected growth of GDP of 3.2
percent, average inflation of 2.5 percent, and a previously announced
consolidated state deficit of 4.5 percent of GDP.
This year's budget is development-oriented and socially sensitive to
the extent it was possible to achieve - it covers all elements of
social spending and enables the continuation of investment projects in
road and housing construction and traffic infrastructure, Suker said.
The most difficult problem in drawing up the budget were financial
obligations that were transferred from last year, totalling more than
6.5 billion kuna, Suker said.
This year, 16.8 billion kuna of the capital sum (11.3 billion of the
domestic debt and 5.5 billion kuna of the foreign debt) and 4.5
billion kuna of interest are due to be paid.
The Finance Ministry's draft envisages revenues totalling 80.8 billion
kuna, of which current (tax and non-tax) revenues are projected at
79.4 billion kuna, which is 6.4 percent more than last year.
It is expected that this increase will be achieved through more
efficient collection of taxes and revenues from dividends and
concessions, Suker said.
Privatisation revenues are expected to total 1.35 billion kuna, which
Suker believes is a realistic estimate.
This year's budgetary objectives include the maintaining of
macroeconomic stability and fiscal consolidation through cuts in the
budgetary deficit of the general state.
The first quantitative goal of the budget is a deficit of the
consolidated state of 4.5 percent or nine billion kuna, which Suker
said determined the spending.
The budgetary deficit alone would amount to 2.7 percent of GDP or 5.4
billion kuna, while Croatian Highways and Croatian Roads companies,
the National Agency for the Rehabilitation of Banks and the Croatian
Privatisation Fund (which are consolidated in the general state
budget) account for 1.8 percent of the deficit in GDP or 3.5 billion
kuna.
Suker said that the 6.5 billion kuna of financial obligations
transferred from last year included obligations of the Croatian
Highways and the Croatian Bank for Reconstruction and Development,
debts in the health sector, court-ordered damages, unpaid farming
subsidies, and other items burdening this year's budget.
(1 EUR = 7.65 kuna)
(Hina) rml sb