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GOVT DRAFT BUDGET FOR 2002 AMOUNTS TO 77 BILLION KUNA

ZAGREB, Nov 15 (Hina) - Under the draft state budget for 2002 the government will send into parliamentary procedure on Thursday, expenses of the consolidated budget, to include pension and health insurance funds for the first time, would amount to 76 billion and 887 million kuna (approx. USD9.22 billion), which is 3.32% more than the consolidated and revised budget for 2001, which amounts to 74.4 billion kuna. The total budgetary revenues of the consolidated budget for 2002 would amount to 73 billion and 908 million kuna, and the budgetary deficit would account for 4.25% of the Gross Domestic Product (GDP). Privatisation is expected to yield receipts worth 2.5 billion kuna, which will not be used for covering budgetary expenses, and the same amount is expected from the collection of old claims. The 2002 budget was drawn up in line with new methods and it will include revenues and obligations of pension and health
ZAGREB, Nov 15 (Hina) - Under the draft state budget for 2002 the government will send into parliamentary procedure on Thursday, expenses of the consolidated budget, to include pension and health insurance funds for the first time, would amount to 76 billion and 887 million kuna (approx. USD9.22 billion), which is 3.32% more than the consolidated and revised budget for 2001, which amounts to 74.4 billion kuna. The total budgetary revenues of the consolidated budget for 2002 would amount to 73 billion and 908 million kuna, and the budgetary deficit would account for 4.25% of the Gross Domestic Product (GDP). Privatisation is expected to yield receipts worth 2.5 billion kuna, which will not be used for covering budgetary expenses, and the same amount is expected from the collection of old claims. The 2002 budget was drawn up in line with new methods and it will include revenues and obligations of pension and health insurance funds, as well as those of the Employment Bureau. These revenues and expenses would amount to 25.18 billion kuna. State expenses, not including these funds, will amount to 48 billion and 19 million kuna, which is 1.5-2 billion kuna less than in 1999 and 2000 (49.6 billion kuna). Next year's budgetary spending, totalling 76.887 billion kuna, will include two extra-budgetary funds - for development and employment and regional development. The two funds would be allocated five billion kuna, to be obtained mostly through privatisation. The government will today also send into parliamentary procedure a set of related documents and bills, and formulate development priorities in the next two years, as well as a package of bills changing laws on excise taxes (on cars, beer, oil products), and bills on the establishment of two funds - on development and employment and regional development. Given the latest developments in the world, a reserve version of economic growth is being drawn up. The current growth projection of 3-4% could fall to 1-1.5%, in which case the budget will have to be reduced by at least three billion kuna, he said. (hina) rml

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