ZAGREB, Oct 3 (Hina) - Croatia has received no warning from international economic institutions about the deterioration of its ranking on the world financial market, Finance Minister Mato Crkvenac said on Thursday presenting to the
parliament a report on the execution of the state budget for the first six months this year.
ZAGREB, Oct 3 (Hina) - Croatia has received no warning from
international economic institutions about the deterioration of its
ranking on the world financial market, Finance Minister Mato
Crkvenac said on Thursday presenting to the parliament a report on
the execution of the state budget for the first six months this
year. #L#
"We have received no sign either in Washington or in Strasbourg or
in Copenhagen or from the strongest world stock exchanges about the
warning that Croatia's ranking has been weakened on the foreign
financial market. This does not mean the same situation will
remain, but it depends on the further policy of the government," the
minister told the parliament.
He said that in the first half of 2002 the budget revenues had been
realised by 48.4 percent, or by over 99 percent of the projected
revenues.
A shortfall was only registered in the failure to collect all the
planned revenues from the tobacco production, with higher
contributions to the health and pension insurance, and the problem
was also noticed in the allocation of the funds for salaries in the
army, police, schooling system and science.
But, these problems are to be settled by the end of the year, the
minister said but did not explain whether the solutions would be
reached through the revision of the budget or by other measures.
According to Crkvenac, other problems in ensuring funds for the
budget are unemployment, slow reforms, insufficient efficiency of
the state administration and the increased foreign debt which now
totals 13.2 billion dollars.
The external debt has increased due to a budgetary deficit and its
amount is still within limits which are controlled and therefore it
is not dangerous, but this issue needs more caution in the coming
period, he added.
Crkvenac described the deficit as the biggest problem of the
Croatian fiscal policy and the government was planning to take
measures as to cut it in the coming period, but the government would
avoid the introduction of new taxes and do its best to meet its
financial obligations as to hold the solvency.
Crkvenac added that the continuation of such policy with the
completely transparent state budget would make it possible for
Croatia to see its economic growth and improve its international
rating.
"The budget is within the acceptable and all important tenets of the
fiscal and other polices for this year are being implemented," he
said.
(hina) ms sb