SDP DISSATISFIED WITH 2004 DRAFT STATE BUDGET

ZAGREB, March 1 (Hina) - Parliamentary deputies from the Social Democratic Party (SDP) on Monday reiterated their position that under the existing laws this year's draft state budget lacked sufficient funds for child and maternity allowances and pensions, which they claim will jeopardise the payment of pension allowance for one month this year.#L# Addressing reporters at a news conference of the SDP's club of deputies, Davorko Vidovic said the budget would lack 1.3 million kuna for pensions and another 200 million for maternity and child allowances if those allowances were paid under the existing laws. Party leader Ivica Racan said that when introducing the draft budget the government referred to a new stand-by arrangement with the IMF, which he said was the reason why his government was criticised by the opposition. Racan said that his government had not been ready to sign a new agreement with the IMF, as "there is enough capital in Croatia for the time being, and we do not need another stand-by arrangement". He stressed that his government had defended its development projects in negotiations with the IMF, which was what the SDP expected from the new government as well. The SDP leader criticised the government for "slandering the former government and its good projects" and added that the government was looking for an alibi in case it did not fulfil its electoral promises by claiming that last year's financial obligations that were transferred into 2004 had burdened this year's budget. The SDP will urge a parliamentary debate on the transferred obligations, Racan said adding his party would not support the proposed budget. SDP deputy Slavko Linic commented on the explanation of the draft budget which says that the transferred obligations totalled 12.5 billion kuna. He said that the transferred obligations totalled 1.107 billion kuna and that the rest of the amount referred to projects that were under way. (Hina) rml sb