BUDGET REVENUE, SPENDING REALISED ACCORDING TO PLAN - FIN. MINISTRY

ZAGREB, April 17 (Hina) - The revenue and expenditure of the state budget in this year's first trimester were realised according to plan, the Ministry of Finance said on Tuesday, refuting media allegations about a dangerous shortfall in state finances. Revenue in the first three months amounted to 13.2 billion kuna (approx. $1.5 billion), which is 22.92 percent of the annual plan. Owing to the national economy's extreme sensitivity to seasonal influence, especially that of agricultural production and tourism, the revenue in the first trimester is, as expected, smaller than in the second and third quarter of the year. Spending is also being realised according to plan, the Ministry of Finance stressed. It singled out the fact that the state budget deficit was continuing to decrease, having been reduced from the 7.4 percent of two years ago to the current 5.3 percent and is, according to fiscal projections, approaching the criteria the European Union stipulated for its members with the Maastricht Agreement. In the last year, the share of state expenditure in the gross domestic product has dropped by five points, thus directly relieving the economy, said the ministry, adding this policy was being pursued. The ministry also mentioned ongoing "promising" negotiations on the second stage in the privatisation of Croatian Telecom. (hina) ha sb