GOVERNMENT PLANS ECONOMIC GROWTH OF 4.2 PERCENT

ZAGREB, Aug 29 (Hina) - The Croatian Finance Ministry next year expects the continuation of the economic growth of 4.2 percent, a reduction of the state budget, inflation of about 4.3 percent, while the number of unemployed persons should drop to 321,000 and the state budget deficit should drop to 4.3 percent of the Gross Domestic Product (GDP). Those assessments and indicators of the economic policy, which are yet to be discussed by the government, were presented by Finance Minister Masto Crkvenac at Wednesday's working meeting attended by Prime Minister Ivica Racan, numerous economists, bankers and businessmen. According to Crkvenac, over the last year and a half the government's economic policy has consolidated itself - numerous inherited problems have been solved and economic trends have been changed. At this moment, this policy is giving results, however, this is not enough, additional economic moves are necessary. Announcing the continuation of reforms and, among other things, a possibility of establishing an employment fund, Crkvenac pointed to the need for drawing up a development policy, a Croatian development project and reforms in the fields of education, state administration, public companies. The majority of the present at the meeting positively assessed the announced orientation, but also pointed to a series of problems, particularly in the monetary and exchange-rate policy. At the end of the three-hour-long discussion, vice premier Slavko Linic stressed the government would continue restructuring the economy, the privatisation process, and added the state intended to invest in road construction, the gas network and power distribution. (hina) it sb