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DISCUSSION ON POSSIBLE REVISION OF BUDGET IS POSSIBLE -- RACAN

ZAGREB, June 18 (Hina) - Prime Minister Ivica Racan told the Croatian Radio today revising the government budget is under intense discussion, considering doubts surrounding the realisation of all privatisation turnover. We must review the budget for two reasons -- decentralisation and including contributions for pension insurance into the state treasury, Racan said. However, he stressed, "we are also intensively discussing and analysing whether and to what extent the review should be done," considering the fact that realising all revenue from privatisation projects is under question, particularly the second phase of the Croatian Telecom. It is also uncertain whether the budgetary review will cover this year's increased funding for children's contributions and returning debts to pensioners, Racan added. Asked whether the turnover from the privatisation process (about 8.5 billion kuna, or approx. one billion
ZAGREB, June 18 (Hina) - Prime Minister Ivica Racan told the Croatian Radio today revising the government budget is under intense discussion, considering doubts surrounding the realisation of all privatisation turnover. We must review the budget for two reasons -- decentralisation and including contributions for pension insurance into the state treasury, Racan said. However, he stressed, "we are also intensively discussing and analysing whether and to what extent the review should be done," considering the fact that realising all revenue from privatisation projects is under question, particularly the second phase of the Croatian Telecom. It is also uncertain whether the budgetary review will cover this year's increased funding for children's contributions and returning debts to pensioners, Racan added. Asked whether the turnover from the privatisation process (about 8.5 billion kuna, or approx. one billion dollars) would decrease by three billion, Racan said it will soon be seen how realistic is the estimate that the revenue will not be realised. "For now it is unrealistic," he stressed. Asked whether he feared social unrest, Racan said "I fear a slow solving of social problems". He warned that a social unrest would be detrimental, and recalled the government will not give in to unrealistic financial requests. The Prime Minister defended Vice-Premier Zeljka Antunovic from criticism forwarded by the country's association of judges. The association requested she hand in her resignation in view of her statements criticising the judiciary. This statement was not adequate, but Antunovic is well aware of that and tried to amend the situation, Racan said. He himself expressed discontent with the slowness and bad quality of the work of the judiciary, but added the judicial authority is independent, and cannot be influenced from the outside. (hina) lml

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