ZAGREB, Nov 27 (Hina) - The Croatian government's coordinating bodies have not accepted in their entirety any amendments MPs have submitted to a draft state budget for 2003, but some amendments which propose the reduction of
expenditure in some budgetary items have been accepted in part, Deputy Finance Minister Damir Kustrak said on Wednesday.
ZAGREB, Nov 27 (Hina) - The Croatian government's coordinating
bodies have not accepted in their entirety any amendments MPs have
submitted to a draft state budget for 2003, but some amendments
which propose the reduction of expenditure in some budgetary items
have been accepted in part, Deputy Finance Minister Damir Kustrak
said on Wednesday. #L#
The government will propose its own amendments aimed at keeping the
budget deficit at a maximum five percent of Gross Domestic Product,
he said.
Reducing the deficit to five percent, which entails reducing
planned budgetary spending by some 250 million kuna (EUR33.8
million), is also a condition set by the International Monetary
Fund for the signing of a new stand-by arrangement.
Kustrak reiterated the government wished to sign the agreement, but
estimated it was unlikely to occur this year and was probable early
in 2003.
Parliament should debate the amendments and the draft budget on
December 4 or 5.
Kustrak today was unable to say how much the budget's total
expenditure would eventually amount to. He said the government was
still negotiating salaries and other material rights with public
and civil servants' unions. If a compromise is reached today, the
government is likely to formulate the salary policy for next year at
tomorrow's session.
MPs have submitted 428 amendments worth some 3.5 billion kuna
(EUR473 million) to the draft budget for 2003. According to some
announcements, the government will not accept any amendments
requesting an increase in funds and will partly accept those
proposing cuts in expenditure.
With its own amendments, which the government will address
tomorrow, budgetary expenditure would be cut by 43 million kuna
(EUR5.8 million).
The spending of the President's Office would be cut by 1.5 million
kuna (EUR202,700), that of the government by 5.9 million
(EUR798,000) and that of the finance ministry by 22 million kuna
(three million euros). Even though MPs have proposed cutting
expenditure for the Intelligence Agency as well, their proposal is
unlikely to pass.
(EUR1 = 7.4 kuna)
(hina) ha sb