NO 'EASY AND COMFORTABLE BUDGET' FOR CROATIA IN NEXT 10 YEARS

ZAGREB, Sept 25 (Hina) - Croatian Deputy Prime Minister Goran Granic on Tuesday assessed that in the next ten years Croatia will not have "an easy and comfortable government budget". Croatia will have a difficult, stretched budget, it will have to struggle to get it every year, Granic told reporters. Chances are that the 2002 budget will not depend on profits from privatisation. We want this, and it is reality, Granic asserted, explaining that this would create conditions for a healthy financing of positive projects. Funds received from privatisation would then be funds for development, he added. Asked how Croatia will finance reforms necessary for approaching the EU, how it will find resources for the development of the economy, considering the fact that resources from privatisation will be decreased, Granic said Croatia had no problems with financing. Privatisation was a problem only when the resources received were a part of budgetary profits. The exclusion of profits from privatisation will mean further savings measures, but not with salaries and social welfare. This does not mean new tax pressures, but the collection of taxes should be made more efficient, grey economy reduced and we should react quicker to various occurrences throughout the year, Granic stressed. (hina) lml