BUDGETARY DEFICIT IN 2001 AMOUNTS TO 3.7 BILLION KUNA

ZAGREB, Feb 12 (Hina) - Croatia's budgetary revenue in 2001 amounted to 53.4 billion kuna (EUR7.2 billion), while budgetary expenses amounted to 57.2 billion kuna (EUR7.57 billion) and the financial year ended with a 3.7 billion kuna (EUR490 million) deficit, making up for 2.2 percent of the Gross Domestic Product (GDP) or 4.2 percent less than planned, read preliminary data of the Finance Ministry.#L# The budgetary revenue amounted to 53,443,000,000 kuna, which is 1.4 percent less than planned. According to the Finance Ministry's preliminary data, tax revenue amounted to more than planned, and the amount of other revenues is in line with planned, while the deficit in budget revenue is the result of a poor privatisation income. This is shown in the yield on capital which amounts to 4.54 billion kuna or 20 percent less than planned. Last year's tax revenue in the budget amounted to 47.27 billion kuna. Excluding tax revenue for pension insurance (included in the budget in July 2001), the net budgetary revenue amounted to 40.49 billion kuna, or 1.4 percent more than in 2000. The most significant budgetary revenue is the Value Added Tax (VAT), which last year totalled to 2.73 billion kuna, or 1.4 percent more than planned and 4.2 percent more than in 2000. The amount made from profit tax totalled to 1.98 billion kuna, or 18.2 percent more than planned, while customs revenues amounted to 4.23 billion kuna, or 28.4 percent more than planned. According to Finance Ministry analysts, this is the result of an intensified import (in the first nine months the import increased by 17.5 percent) and a strong increase in the import of vehicles (since war veterans' benefits were due to be cancelled). Namely, customs revenues include the revenue from excise taxes on vehicles, and the revenue increased by over 300 percent in relation to the year before. According to the Finance Ministry preliminary data, the total expenditure in 2001 amounted to 57,202,000,000 kuna which is 1.6 percent less than planned. Budget expenditures for wages amounted to 14.84 billion kuna or 1.4 percent more than planned and about five percent less than in 2000. According to the analysts, the overfulfilment of the plan is the result of December's payment of Christmas bonuses and child benefits. The measures for savings and a reduction of the government spending are demonstrated in the budgetary items on the purchase of other goods and services (7.22 billion kuna or 2.5 percent less than planned). The ministry's preliminary data also show that last year's budgetary deficit amounted to 3,758,000,000 kuna, which is 2.2 percent of GDP, namely 4.2 percent less than planned. The deficit was covered by issuing bonds on the international market (9.83 billion kuna) and treasury bills on the domestic market (2.09 billion kuna). According to the ministry, the capital amounts of 2.04 billion kuna of domestic loans and 5.81 billion of foreign loans were settled in 2001. EUR1 = 7.55 kuna (hina) it sb