ZAGREB, Feb 20 (Hina) - A policy of rationalisation, which was incorporated in the state budget for 2001 and which envisages cuts in public spending, is the Croatian government's commitment and not a demand of the International
Monetary Fund (IMF), a spokesman for the Croatian Government said on Tuesday. According to a statement spokeswoman Aleksandra Kolaric forwarded to the media today, Prime Minister Ivica Racan's Cabinet has always pointed to the necessity of carrying out a policy of rationalisation. This was obvious in all the important documents the government has drawn up - from the Government's work programme, a memorandum on the economic and financial policy adopted in late 2000, which is the Government's medium-term economic strategy, to its final incorporation in the budget, she explained. Within this rationalisation, the Government envisaged the reduction of and cuts in public spending and t
ZAGREB, Feb 20 (Hina) - A policy of rationalisation, which was
incorporated in the state budget for 2001 and which envisages cuts
in public spending, is the Croatian government's commitment and not
a demand of the International Monetary Fund (IMF), a spokesman for
the Croatian Government said on Tuesday.
According to a statement spokeswoman Aleksandra Kolaric forwarded
to the media today, Prime Minister Ivica Racan's Cabinet has always
pointed to the necessity of carrying out a policy of
rationalisation. This was obvious in all the important documents
the government has drawn up - from the Government's work programme,
a memorandum on the economic and financial policy adopted in late
2000, which is the Government's medium-term economic strategy, to
its final incorporation in the budget, she explained.
Within this rationalisation, the Government envisaged the
reduction of and cuts in public spending and thus the reduction of
means which would be allocated for salaries, as well as the
annulment or reduction of some benefits which some groups of
beneficiaries use. For instance, this referred to the benefits for
the import of cars which Homeland Defence War veterans could use,
but on the other hand, there was stimulation, for the same purpose,
for persons who became disabled during the war.
As regards the issue of rationalisation, these were not demands of
the International Monetary Fund but the policy which the incumbent
Croatian government had already declared. It will be a lucky
circumstance if the IMF accepts such a government policy, the
spokeswoman added.
Regarding comments on the alleged loss of Croatia's financial
sovereignty with the signing of a letter of intent with the IMF, Ms.
Kolaric said those who saw it that way obviously forgot that the
former government had signed two agreements of that kind with the
IMF, one of which was implemented while the second was not.
Kolaric described attempts to compare Croatia with Slovenia as
inappropriate as this neighbour did not have political turmoil and
enjoyed a peaceful and unimpeded progress. Furthermore, the most
developed countries in the world are not free from IMF supervision,
and for instance Slovenia also has an arrangement with the IMF on
the so-called surveillance, Kolaric concluded.
(hina) ms