ZAGREB, Feb 27 (Hina) - Prime Minister Ivo Sanader presented a proposed national budget for this year in parliament on Friday, saying that its main objectives included support for macroeconomic stability and the economy, the fight
against unemployment, greater expenditure for pensioners, war veterans and pregnant women, and promotion of the country's efforts to join the EU and NATO.
ZAGREB, Feb 27 (Hina) - Prime Minister Ivo Sanader presented a proposed
national budget for this year in parliament on Friday, saying that its
main objectives included support for macroeconomic stability and the
economy, the fight against unemployment, greater expenditure for
pensioners, war veterans and pregnant women, and promotion of the
country's efforts to join the EU and NATO.#L#
Despite limitations, the budget shows that the government is beginning
to deliver on the election promises made by the Croatian Democratic
Union (HDZ) and its coalition partners, Sanader said.
He said that the budget reflected an expected economic slowdown and
that it was limited by a debt of about 22 billion kuna coming up for
repayment this year. There is also more than six billion kuna in
financial commitments that the former government transferred into this
year, he added.
The draft budget projects a GDP growth of 3.2 per cent, an inflation
rate of around 2.4 per cent and a stable exchange rate.
Budget revenues are planned at 79.5 billion kuna, which is 6.4 per
cent more than last year, while expenditures are expected to reach
84.9 billion kuna, an increase of 5.7 per cent. A planned consolidated
central state deficit is 4.5 per cent of GDP, while a budget deficit
is 2.7 of GDP.
Sanader drew attention to a high foreign debt that reached US23.7
billion at the end of 2003, saying that the rate of foreign debt
growth was worrying because it had risen by 8.2 billion in 2003
alone. "This government cannot, must not and will not maintain this
rate," he stressed.
The budget also promotes macroeconomic stability through a reduced
deficit and provides for funds for the repayment of outstanding debts
(530 million kuna in the health sector, 100 million kuna for legal
disputes, a billion kuna incurred by the Croatian Highways company and
300 million kuna by the Croatian Bank for Reconstruction and
Development), the prime minister said.
Sanader said that the budget would continue to support the economy and
create conditions for the implementation of important infrastructure
projects, adding that 5.6 billion kuna would be secured for investment
projects of Croatian Highways, 1.8 billion kuna for Croatian Roads,
1.6 billion kuna for Croatian Water Management, around a billion kuna
for the reconstruction of war-damaged housing and the return of
refugees, and 1.57 billion kuna for Croatian Railways.
(1 euro = 7.6 kuna)
(Hina) vm sb