ZAGREB, Oct 30 (Hina) - The proposed budget for next year weighing 80.2 billion kuna (approximately 10.69 billion euros) was endorsed by the Croatian Government at an extraordinary session on Wednesday night and forwarded to the
Croatian parliament.
ZAGREB, Oct 30 (Hina) - The proposed budget for next year weighing
80.2 billion kuna (approximately 10.69 billion euros) was endorsed
by the Croatian Government at an extraordinary session on Wednesday
night and forwarded to the Croatian parliament. #L#
If the amounts of repayments on foreign loans as well as those for
bonds issued, valued at 7.67 billion kuna (over one billion euros),
are added to the above-mentioned figure this would bring the 2003
budget to 87.879 billion kuna (11 billion euros).
Features of the budget for next year, as portrayed by Croatian
Finance Minister Mato Crkvenac, is a decrease in the budget deficit
and a slowing down of debts and more social sensitivity.
New debts will be decreased from this year's 4 billion kuna (around
533 million euros) to 1.68 billion kuna (224 million euros), the
minister said.
The budget foresees an increase in salaries by about 2.5 per cent
Crkvenac said. He added that this should include a growth of three
to four per cent which should be felt in net salaries and which would
be implemented through the amendments to the Income Tax Law.
Crkvenac pointed out that pensions would not fall. Of the 24.9
billion kuna (3.32 billion euros) foreseen for the Ministry of
Labour and Social Security, 21.6 billion kuna (2.88 billion euros)
will be earmarked for pension payments.
Crkvenac determined a budget priority for science and education and
assigned funds from the state budget for the said purposes would
increase by 10.3 per cent and 6 per cent respectively.
Minister Crkvenac pointed out that next year there could be 16.8 per
cent more funding for the judiciary. The judiciary, he said, in 2003
is expected to recruit around one thousand new employees, mostly
judges.
Agriculture which is in the process of reforms will receive around
20 per cent more funding. That portfolio will receive a total of 2.3
billion kuna (306 million euros) of which 1.96 billion (261 million
euros) will be for incentives and support.
The government stressed development items in economy-related
ministries. As such the Economy Ministry will be given 35.87 per
cent more funding while the Ministry of Trades and Small
Enterprises will receive 19.36 per cent more.
Less funding next year could go to the Defence Ministry. It will get
4.1 billion kuna or 546 million euros which is by 5.91 per cent less
than this year.
At this evening's session, the Government endorsed accompanying
budget documents amongst which is a bill on the execution of the
budget for next year. The bill allows debts of 1.6 billion kuna (213
million euros) for various budget expenses as well as authorising
the government to take out loans for the construction of highways to
the amount of 3.9 billion kuna (520 million euros).
The draft budget was forwarded to parliamentary procedure and the
Sabor will debate the bill in two readings.
In addition to estimates that Croatia's debts are under control,
the government reported details concerning public debts. Public
debts this year will remain at the same level at around 50.7 per cent
of the Gross Domestic Product (GDP). That level of debt is not high
and we cannot accept criticism of over-indebtedness, Crkvenac
said. He supported his argument with information that public debts
in EU countries amount to around 68.4 per cent of the GDP.
Crkvenac rejected comparisons of Croatia to Argentina interpreting
that foreign public debts in Croatia of around 5.8 billion dollars
at the moment are covered by about 97 per cent with foreign currency
reserves of the Croatian National Bank.
(hina) sp ms