ZAGREB, Nov 13 (Hina) - Expenses in this year's revised budget will be 83.73 million euros lower than planned, however, the saved funds will be used to cover the spending in the health system, which is higher than planned, Finance
Minister Mato Crkvenac said in parliament on Wednesday, presenting a draft revised budget for 2002.
ZAGREB, Nov 13 (Hina) - Expenses in this year's revised budget will
be 83.73 million euros lower than planned, however, the saved funds
will be used to cover the spending in the health system, which is
higher than planned, Finance Minister Mato Crkvenac said in
parliament on Wednesday, presenting a draft revised budget for
2002. #L#
The state deficit in the budget was previously planned to account
for 4.25% of the Gross Domestic Product, but in the revised budget
it will drop for the first time below four percent, to 3.92%, said
Crkvenac. The state deficit including funds, roads, and local self-
government expenses will be reduced from 6.8 to 6.34% of GDP.
Funds saved with the revised budget total 1.16 billion kuna, while
some expenses will increase by 540 million kuna. Hence the cut in
expenses of 628 million kuna. If the 103 million kuna saved from
development and regional development funds is added to this, the
total saved funds amount to 731 million kuna.
Unfortunately, expenses in the health system are such that the
saved funds will be used to cover expenses that exceed the planned
amount, Crkvenac said.
Most funds were saved in the Finance Ministry (629 million kuna),
which is the result of a drop in interest rates, reduced costs of
loan repayment due to changed exchange rates.
The funds saved in the Ministries of Maritime Affairs and Public
Works total 313 million kuna, the reason being the non-drawing of
foreign loans due to the failure to prepare projects.
Expenses for workers will increase by 574.4 million kuna. Funds for
workers had to be increased in the ministries of education,
science, internal affairs and defence.
Crkvenac also warned about the problem of the foreign debt. The
overall foreign debt amounts to around 13.2 billion dollars, of
which the state accounts for 5.8 billion. The debt is not small, it
should be taken care of and reduced in the coming period, Crkvenac
said. He also noted that in relation to other countries in
transition, Croatia's debt was lower and that the Croatian National
Bank reserves covered 98% of the debt.
(hina) rml