GOVERNMENT ADOPTS REVISED BUDGET

ZAGREB, Oct 4 (Hina) - A revised state budget enables the state to stay solvent and the budget and state finances to remain under control, Finance Minister Mato Crkvenac told reporters after Thursday's closed-door government session which adopted a revised budget. Crkvenac believes the most important effect of the revision is keeping expenses within planned limits. This year's budget has been defined entirely with the latest revision, without increases in spending and with secure revenues for planned expenses, Crkvenac said, adding slightly more than 1.8 billion kuna (approx. USD217 million), the amount missing in the budget, would be provided by cutting on other budgetary items and seeking new loans. The budget was exceeded due to salaries, for which it will be necessary to earmark 856 million kuna more (approx. USD103.13 million) than initially planned, whereas child allowances will require an additional 950 million kuna (USD114.45 million). To secure those funds, which together amount to 1.806 billion kuna, some other expenses will have to be cut, such as official trips, material costs, subsidies, Crkvenac said. Speaking about problems with revenues, Crkvenac said privatisation revenues were estimated at 6.5 billion kuna (USD783.13 million), with 4.6 billion having been secured so far. It is expected a total of 5.5 billion kuna of privatisation revenues will be realised by the end of the year. This means the budget would be short by around 1.09 billion kuna, a gap to be bridged by additional loans, Crkvenac said. Current revenues are being realised as planned and are by some 10% higher in relation to last year, he said. The problem of grey economy remains and a campaign aimed at preventing it is expected to result in a speedier growth of tax revenues next year. Intensive work on a draft budget for next year is under way. We will make efforts to see that it stimulates export, employment, small businesses, and good ideas, Crkvenac said. (hina) sb rml