CROATIAN PARLIAMENT BEGINS DEBATE ON 2004 BUDGET

ZAGREB, Feb 27 (Hina) - Croatian parliamentary parties on Friday discussed a proposed budget for this year, with some announcing their support, some setting conditions and others expressing their opposition to the proposal.#L# Announcing the support of the Social Liberal Party (HSLS) and the Democratic Centre (DC), Ivan Cehok described the draft budget as well balanced and welcomed increased funds for science, education and the judiciary. The Peasant Party (HSS) made its support for the budget conditional on fulfilment of some of their demands, including the adoption of a law on national pension for the most destitute, which would require 300 million kuna. In their criticism of the budget, opposition deputies mostly cited excessive government spending and claimed that the rate of economic growth of 3.2 per cent was too low. The Social Democratic Party (SDP) expressed dissatisfaction with the budget draft. Its leader, Ivica Racan, described the projected rate of growth as "defensive and unambitious", and said that it would not ensure development and social stability. Damir Kajin of the Istrian Democratic Assembly (IDS) said that this budget would take Croatia "straight into a debt crisis" and that the government might see the end of its term of office with a foreign debt reaching US40 billion. Finance Minister Ivan Suker responded by saying that Croatia had no problems with debt repayment. He said that the foreign debt could reach 27 billion by the end of the year with the government's share in the debt structure totalling 30 per cent. Anto Djapic of the Party of Rights (HSP) said that his party would demand more funds for the parliament "in order to prevent its further marginalisation" and more funds for science, education, the modernisation of the armed forces and the railway network. The HSP would also demand funds for the establishment and work of the Coast Guard to ensure the functioning of the fishing and ecological zone in the Adriatic Sea. (Hina) vm sb