ZAGREB, Aug 26 (Hina) - Changes to this year's state budget will not affect its overall value, but refer to the internal redistribution of funds totalling 2.443 billion kuna (around 328 million euros), Croatian Finance Minister Mato
Crkvenac said on Tuesday.
ZAGREB, Aug 26 (Hina) - Changes to this year's state budget will not
affect its overall value, but refer to the internal redistribution
of funds totalling 2.443 billion kuna (around 328 million euros),
Croatian Finance Minister Mato Crkvenac said on Tuesday. #L#
The government today held a special session at which it requested
that parliament hold an extraordinary session from 3 to 12
September at which it would discuss changes to the budget and a set
of other documents related to finances.
The changes do not refer to the budgetary revenue nor to the
spending (which totals 78 billion kuna or EUR10.48 billion), and
the budgetary deficit will be lower than expected, Crkvenac told
reporters in front of the government building in Zagreb.
"This does not bring into question salaries, welfare, pensions,
legal and contractual obligations or key projects and reforms, but
enables regular execution of the budget," Crkvenac said.
Of the 2.443 billion kuna of budgetary funds to be redistributed,
the largest part or 1.771 billion refers to redistribution among
ministries, while 662 million will be secured through internal
redistribution within the ministries.
The changes will result in an increase in funds for the ministries
of defence, the interior, and social welfare, Crkvenac said.
The defence ministry alone will need 480-500 million kuna more than
initially planned, Crkvenac said.
One of the reasons for the budgetary revision is the fact that funds
for the upcoming parliamentary elections had not been calculated
into budgetary expenses. Eighty million kuna will be set aside for
that purpose, although requests were made for more than a hundred
million kuna, he said.
Crkvenac said that the biggest cuts would be made in his ministry,
where savings will amount to some 860 million kuna.
He added that more than a billion kuna had been saved this year in
interest alone, and that better feeding of local budgets enabled
the redistribution of some 200 million kuna in the Settlement
Fund.
Major cuts in funds will be made in the ministries of defence, war
veterans, agriculture, maritime affairs, justice and health, while
other ministries will see minor reductions, amounting to 10-20
million kuna, the minister said.
Crkvenac said the budgetary revision was necessary due to increased
expenses caused by the recent drought and other natural disasters,
increased expenses for faster employment, and the reform of some
areas, especially the defence system, which he said was being
successfully reorganised.
A total of 6,500 persons have left the defence system, which has
increased expenses for severance pay and pensions, Crkvenac said,
adding that salaries in the defence ministry had increased as
well.
Other reasons for the budgetary revision are increased expenses of
social welfare and the pension fund and a growing number of court
verdicts granting persons sacked in 1990 and 1991 the right to
return to work and claim salaries for the period during which they
were not working, which in some cases amount to 2-3 million kuna, he
said.
Asked why he did not use the term budgetary revision but changes and
amendments to the budget, Crkvenac said he did so because the
overall amount of the budget would not be changed, but rather its
internal structure.
The minister reiterated several times that the state budget was
liquid with all obligations being fulfilled. Care is being taken
not to leave any debts to the new authorities and not to stop the
reforms and to regularly fulfil all obligations referring to social
rights, pensions etc., Crkvenac said.
(hina) rml