ZAGREB, Oct 19 (Hina) - The Croatian parliament on Friday adopted with a majority of votes changes to this year's state budget which do not envisage an increase in budgetary spending but their reduction in the amount of 1.9 billion
kuna (close to USD232 million). Privatisation revenues will be cut by one billion kuna and the deficit will be covered with new loans, probably to be sought on the domestic market. Budgetary spending (originally set at 49.6 billion kuna or close to USD6.05 billion and increased to 58.1 billion with a technical revision in June and inclusion of pension contributions) will not be changed but thoroughly reorganised. Revising some items and making cuts will secure an additional 956 million kuna for the salaries of budgetary users and 950 million kuna for child allowances (a total of 1.9 billion kuna). Under the adopted changes, privatisation receipts will be reduced from 6.5 to 5.5 billion kuna (USD0.792 to
ZAGREB, Oct 19 (Hina) - The Croatian parliament on Friday adopted
with a majority of votes changes to this year's state budget which
do not envisage an increase in budgetary spending but their
reduction in the amount of 1.9 billion kuna (close to USD232
million). Privatisation revenues will be cut by one billion kuna
and the deficit will be covered with new loans, probably to be
sought on the domestic market.
Budgetary spending (originally set at 49.6 billion kuna or close to
USD6.05 billion and increased to 58.1 billion with a technical
revision in June and inclusion of pension contributions) will not
be changed but thoroughly reorganised.
Revising some items and making cuts will secure an additional 956
million kuna for the salaries of budgetary users and 950 million
kuna for child allowances (a total of 1.9 billion kuna).
Under the adopted changes, privatisation receipts will be reduced
from 6.5 to 5.5 billion kuna (USD0.792 to 0.670 million). The
missing billion kuna will be covered with new loans, to be sought on
the domestic market.
The changes forwarded by the government have been suggested by the
ministries of farming, internal affairs, public works and the
Croatian Mine Action Centre.
These are minor changes within some items which will not cause an
increase in spending, Deputy Finance Minister Damir Kustrak said.
However, the opposition's Croatian Democratic Union criticised the
amendments. The party whip Vladimir Seks believes it is
unacceptable to make cuts in the Farming Development Fund (from 70
to 60 million kuna).
He also objected to the proposal that costs for business trips at
the Croatian Mine Action Centre be increased from 871,000 to 1.9
million kuna and that Croatia's two-million-kuna deposit for a mine
removal loan be cancelled.
The HDZ deputy warns that the state deposit for a loan for the
reconstruction of eastern Slavonia has also been reduced from 10 to
2.5 million kuna.
HDZ deputies Jadranka Kosor and Jure Radic believe it is
unacceptable to change de-mining funds as this could stall the de-
mining process, which, according to some estimates, should be
completed by the year 2010.
Radic requested that the 10 million kuna, originally intended for
Croatia's deposit in the de-mining loan, be spent for de-mining
purposes and not be redirected into government reserves or used for
other purposes.
Kustrak answered that drawing loans had a certain dynamics, and
that the demining loan was not questionable, however, it would be
drawn later, probably at the beginning of the next fiscal year.
Besides, the redistributing of the funds has been suggested by the
ministries and the Mine Action Centre and they know their
obligations and potential, Kustrak said.
The parliament today also adopted changes to the Law on the
Execution of the State Budget and the government obliged itself to
cover deficits in local budgets caused by the cancellation of a
regulation which increased the salaries of public servants living
in areas of special state concern.
(hina) rml