RACAN: 2002 BUDGET TRANSPARENT, DEVELOPMENT-ORIENTED, SOCIALLY JUST

ZAGREB, Nov 22 (Hina) - The draft state budget for 2002 is transparent, development-oriented, realistic, restrictive and socially just, Prime Minister Ivica Racan said presenting the draft at a parliament session on Thursday. In order to achieve development goals, the government is offering cooperation not only to employers and unions but to all political parties and non-government associations because economic recovery and the stimulation of entrepreneurship is a national interest which calls for a consensus. The state budget is for the first time completely transparent because it specifies public spending entirely, including the health and pension funds and the Employment Bureau, Racan said. The 2002 state budget is in line with Croatia's economic potential, the prime minister said, stressing the government was determined not to allow the financing of state expenses with new loans or inflation. Explaining the social dimension of the budget, Racan said public expenses accounted for 70% of all budgetary expenses, with salaries in the state and public sector accounting for 14.1 billion kuna. Despite the reduction of the public spending, the salaries of government employees will not be reduced, he said. We are confident the execution of the 2002 budget will enable the continuation of positive changes in the Croatian society and economy. The reforms that have been launched will be given impetus and the recovery of the economy will continue this year already, which will secure basic preconditions for the government's most important task - a better living of all citizens, Racan said. (hina) rml