JAN-FEB: BUDGET REVENUE EUR1.35 BILLION, SPENDING EUR1.44 BILLION

ZAGREB, May 9 (Hina) - Budgetary revenues in the first two months of 2002 amounted to 9.97 billion (EUR1.35 billion) and expenditure to 10.64 billion kuna (EUR1.44 billion), with the budgetary deficit totalling 805.9 million (EUR108.91 million), the Croatian Finance Ministry said on Thursday. #L# In its monthly statistical overview, the ministry says the inclusion of health, pension, and employment bureaux' transactions into the state budget significantly hinders data comparability with last year. Revenues is January and February grew by 74.3 percent as against the same time in 2001. However, more than four billion of the 9.97 billion kuna recorded in these two months came from social welfare contributions. Expenditure in January-February 2002 rose by 48.3 percent as against the same time last year. The biggest increase was recorded for transfers to citizens, including pensions, with 4.26 billion kuna paid out in these two months. Almost three fourths of the entire expenditure goes for budgetary beneficiaries' wages and current transfers. This year, health sector wages are included in the state budget. Pensions were included in July 2001. A total of 1.65 billion kuna was paid for the wages of the higher number of budgetary beneficiaries in January and 1.67 billion in February, which is, respectively, 30 and 31.3 percent more than in January and February 2001. When compared, however, the wages of budgetary beneficiaries in January-February 2002 are 4.1 percent lower than at the same time the year before. The budgetary deficit in February was 368.6 million kuna. It was financed through a 137.2 million treasury note issue and a EUR500 million bond issue. The government settled 614.8 million of its domestic and more than three billion of its foreign debt, including 2.57 billion kuna as capital for the euro bonds. (EUR1 = 7.4 kuna) (hina) ha sb