ZAGREB, Aug 23 (Hina) - The expenditure level in 2003 state budget users will be able to count on will be the same as this year's or slightly higher; the government has been preparing changes to the taxation system, which will
increase the non-taxable amount of income and regulate a new system of benefits for items such as medicine which is not included in health benefit listings, supply of orthopaedic aids, home purchases, etc., Finance Minister Mato Crkvenac told journalists on Friday.
ZAGREB, Aug 23 (Hina) - The expenditure level in 2003 state budget
users will be able to count on will be the same as this year's or
slightly higher; the government has been preparing changes to the
taxation system, which will increase the non-taxable amount of
income and regulate a new system of benefits for items such as
medicine which is not included in health benefit listings, supply
of orthopaedic aids, home purchases, etc., Finance Minister Mato
Crkvenac told journalists on Friday. #L#
Vital budgetary guidelines for next year include lowering the
budgetary deficit from this year's 4.2 to 2.6 per cent of GDP.
Another objective is to decrease debts without burdening tax
payers, Crkvenac said. Expenditure will have to be adjusted to
these changes as well, he added.
Even though he did not wish to specify budget figures, the Finance
Minister said that expenditure projections were clear. It is
estimated that current budgetary revenues will amount to 73.5
billion kuna (around 10 billion euros), while privatisation
receipts are estimated at 2.5 billion kuna (340 million euros).
Crkvenac pointed out that this was a conservative estimate as
privatisation receipts could be higher.
As far as next year's budgetary expenditure is concerned, Crkvenac
said that budget users will have to keep in line with this year's or
slightly higher expenditure.
This year's budgetary expenditure amounts to around 84 billion kuna
(11.42 billion euros). When repayments (of 6.98 billion kuna or
0.94 million euros) are deducted, budgetary expenditure amounts to
around 78 billion kuna (10.61 billion euros). This amount will not
be any higher next year and if so, only slightly, Crkvenac claimed.
He pointed out that the government would carry out its obligations
with regard to pensioners, the health system, adequate salary
increases, etc. next year as well. He further highlighted the
government's decisions relating to the shipbuilding industry,
health, and railways that are worth over two billion kuna (0.27
billion euros) of next year's budgetary funds.
The Finance Minister repeated that this year's budget would not be
revised. Any incoherence in individual items will be resolved with
corrections or minor reorganisation within the budget, he
concluded.
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