ZAGREB, Nov 14 (Hina) - The priorities of the Croatian government in 2003 are science and education, reforms in the judiciary and the system of agricultural inducements, the resumption of the reform of and consolidation of the health
sector, and the encouragement of development, Finance Minister Mato Crkvenac said in parliament on Thursday, proposing a 2003 state budget.
ZAGREB, Nov 14 (Hina) - The priorities of the Croatian government in
2003 are science and education, reforms in the judiciary and the
system of agricultural inducements, the resumption of the reform of
and consolidation of the health sector, and the encouragement of
development, Finance Minister Mato Crkvenac said in parliament on
Thursday, proposing a 2003 state budget. #L#
According to the government's motion, the 2003 state budget should
amount to 87.8 billion kuna (EUR11.86 billion), which includes the
settlement of foreign loans in the amount of 7.6 billion kuna
(EUR1.02 billion).
Sixty-three percent of expenditure, about 55.4 billion kuna
(EUR7.48 billion), is earmarked for the needs of three ministries -
the labour and social welfare, finance, and health.
Crkvenac said the budget was based on the further accelerating of
economic growth by about five percent, reducing the budget deficit
to 2.48 percent, reaching a 3.5 percent inflation rate, and
reducing unemployment.
As the main characteristics of the budget, Crkvenac noted the
further reduction of the deficit and a slower incurring of debts, as
well as social sensitivity.
The planned state deficit in 2002 amounted to 4.25 percent, but was
reduced to 3.92 percent, while the deficit of all funds and local
budgets was planned at 6.8 percent, but was reduced to 6.34 percent,
Crkvenac said.
He said the government planned to reduce the state deficit in 2003
from 3.92 to 2.48 percent and the deficit of all funds and local
budgets to five percent.
The government planned a 7.3 percent increase in budget revenues
and a 3.7 percent increase in expenditures in 2003. Also planned was
the reduction of grey economy and a more efficient work of tax
officials.
With a five percent real growth rate and a 3.5 percent inflation
rate, the state budget for 2003 would nominally increase by four
percent, thus enabling the reduction of the deficit and debts,
Crkvenac said.
Stating that everybody was against a debt increase, the finance
minister called on MPs to advocate its reduction through amendments
which were aimed at reducing budgetary expenditures.
Parliament president Zlatko Tomcic told MPs they could submit
amendments to the budget by November 20.
The government will voice its opinion on them by November 28 or
December 2, while the parliament will vote on December 4 or 5,
Tomcic said.
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