GOVERNMENT DRAFTS BUDGET AMENDMENTS

ZAGREB, Sept 1 (Hina) - The Croatian government met behind closed doors on Monday to draft amendments to this year's budget. #L# According to the draft amendments, income and expenditure would not change, the budgetary deficit would also remain the same, but the national debt would be reduced by 340 million kuna, Finance Minister Mato Crkvenac told reporters after the session. Crkvenac said that 2.45 billion kuna would be redistributed within the budget. The amendments will not leave any debt to the new government and will ensure a continuation of reforms, the implementation of key projects, and all social benefits and pensions, he said. Crkvenac said that through the budget revision the government secured an additional 100 million kuna for the further encouragement of export. He said that the budget revision was prompted by increased costs caused by the drought, growing employment, the implementation of reforms and social programmes, lawsuits filed by persons laid off from work, increased budget reserves, and the need to secure funds for parliamentary elections. The government drafted a decision on temporary financing for the first three months next year, with the projected expenditures totalling 18.7 billion kuna. The government also discussed fiscal projections for the 2004-2007 period, but decided not to send this document to parliament so as not to prejudice the future policy of the new government, Crkvenac said. A document with guidelines for macroeconomic and fiscal projections for 2004 was sent for further elaboration. This document will be adopted soon because the government will use it in drafting the next year's budget, the minister said. Among the basic guidelines for the period up to 2007, Crkvenac mentioned continuation of dynamic economic growth of five percent per year, a stable macroeconomic situation, the rate of inflation as that in Europe, and accelerated employment. (hina) vm sb