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SABOR DISCUSSES EXECUTION OF BUDGET

ZAGREB, Nov 17 (Hina) - Opposition and ruling parties in the Croatianparliament on Wednesday traded recriminations in a debate about areport on the execution of the state budget in the first half of thisyear and the performance of the former government and the incumbentone.
ZAGREB, Nov 17 (Hina) - Opposition and ruling parties in the Croatian parliament on Wednesday traded recriminations in a debate about a report on the execution of the state budget in the first half of this year and the performance of the former government and the incumbent one.

The ruling parties claimed that the incumbent government, despite debts inherited from the previous government, had managed to change negative trends and stabilise macroeconomic indicators.

In the first half of this year tourism saw a ten percent rise in relation to the year before, the foreign debt growth was slowed down, and industrial production started recovering after an initial stagnation, said Sime Prtenjaca of the Croatian Democratic Union (HDZ).

"Based on this report, we can certainly say that all macroeconomic movements relevant for the stability of the state will be stabilised by the end of the year," Prtenjaca said.

He accused the former government of causing a 9.5 percent rise in this year's expenditure by signing a collective agreement with the unions of employees in state and public services for election purposes.

The opposition MPs claimed that the positive indicators were the result of the former government's work and accused the incumbent government of giving up on already launched development and social projects at the request of the IMF.

Dragica Zgrebec of the Social Democratic Party (SDP) said that budgetary funds for regional development, small and medium-sized enterprises and employment had been reduced.

The last arrangement with the IMF will delay the establishment of a fund for the return of the government debt to pensioners, because it binds the government to prior consultations with the IMF and the World Bank, she added.

Zeljko Pecek of the Peasant Party (HSS) believes that the positive trends in the report are the result of chance and not efficiency in the execution of the budget.

Libra MP Jozo Rados warned that the government's office for public relations recently launched a campaign totalling more than 2.5 million kuna, more than the office's budgetary allocation, which he said was aimed at promoting the presidential candidate of one party.

Miroslav Rozic of the Party of Rights (HSP) warned about the high costs of intellectual services. "Judging by expenditure for intellectual services, it seems that the state administration lacks competent people," he said.

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