Sanader said that after the incumbent Government's 330 days in office, Croatia's economic growth rate was four percent, exports were growing faster than imports for the first time in 10 years, as seen in the 16 percent growth of exports and six percent growth of imports in this year's first nine months, the number of the unemployed fell to below 300,000 in September, and industrial output went up 3.5 percent.
The PM said the growth of the external debt was slowed down, adding that this year the external debt went up 2.8 billion kuna, as against 8.2 billion in 2003.
Sanader said that based on those assumptions, the Government expected Croatia to experience an economic jump in the next three years and that in 2007 the national deficit would be less than three percent.
"It's a big ambition, but if we succeed it will prove that despite an incomparably more difficult position than other countries in transition (because of the war), Croatia can keep the pace of developed European countries."
Speaking of the Government's five priority goals in 2005, Sanader mentioned social sensitivity and responsibility towards the socially endangered, war veterans, pensioners, and children. He said the draft budget envisaged 1.6 billion kuna for child's allowances, more money for childbirth allowances, and 3.5 billion kuna for war veterans.
Sanader added the draft budget was also intended to support macroeconomic stability by slowing down the growth of the external debt, reducing the national deficit, and consolidating public finances.
The PM went on to say that the draft budget was aimed at supporting economic growth through infrastructure projects, envisaging four billion kuna for highways, two billion for roads, 1.7 billion for water management, three billion for reconstruction and the return of the displaced and their property, three billion for railways, 230 million for the islands, and about 430 million kuna to stimulate exports.
Sanader said one of the goals was to further reduce the unemployment rate, so 500 million kuna are intended for employment stimulation programmes and 775 million to directly support the competitiveness of domestic products.
The PM also said the Government planned to step up Croatia's integration into the EU over the next three years by carrying out the necessary reforms.
Sanader went on to say the draft budget envisaged nearly 500 million kuna for the Foreign Ministry, more funds for the European Integration Ministry, and nearly two billion kuna for the judicial reform.
Finance Minister Ivan Suker said the draft budget envisaged national spending to amount to 90.9 billion kuna, revenue to 86.7 billion, and the deficit to account for 3.7 percent of GDP.
Suker backed the Government's claims that the draft budget for 2005 was development-and socially-oriented by saying that as much as 45.9 percent of the planned funds, or 41 billion kuna, was intended for the social sector, while 14 billion was intended for development.
Parliament Speaker Vladimir Seks said MPs could submit amendments to the draft by 2000 hours on Monday. Parliament is expected to vote on the draft and the amendments at the end of next week.
(EUR1 = 7.6 kuna)