ZAGREB, Nov 23 (Hina) - MPs of the ruling five-party coalition said on Friday that the establishment of the fund for development and employment and the fund for regional development would positively affect the development of the
country, while the Opposition stressed that the funds were unnecessary, that is, that all their activities could be carried out through existing ministries and the Croatian Reconstruction and Development Bank. Deputy Finance Minister Damir Kustrak said the aim of establishing the funds was to stimulate the development of entrepreneurship and support employment, especially of young people. A third of resources in the funds would be transferred from the government budget, and two thirds would be profits from privatisation. The funds would have annual financial plans which would be endorsed by the parliament at the government's suggestion. During a discussion on the funds, MPs asked that the sources fo
ZAGREB, Nov 23 (Hina) - MPs of the ruling five-party coalition said
on Friday that the establishment of the fund for development and
employment and the fund for regional development would positively
affect the development of the country, while the Opposition
stressed that the funds were unnecessary, that is, that all their
activities could be carried out through existing ministries and the
Croatian Reconstruction and Development Bank.
Deputy Finance Minister Damir Kustrak said the aim of establishing
the funds was to stimulate the development of entrepreneurship and
support employment, especially of young people.
A third of resources in the funds would be transferred from the
government budget, and two thirds would be profits from
privatisation.
The funds would have annual financial plans which would be endorsed
by the parliament at the government's suggestion.
During a discussion on the funds, MPs asked that the sources for the
funds' finances be defined more precisely, and that the priorities,
criteria and deadlines for the use of the resources be set. They
also voiced concern that the founding of the funds would increase
red tape.
New funds which should speed up the state's development are
constantly being established, which in fact increases red tape and
public expenditure, Tonci Tadic of the Croatian Party of
Rights/Croatian Christian Democratic Union (HSP/HKDU) said,
stressing that the funds' activities could be performed by existing
institutions.
Vesna Skare Ozbolt of the Democratic Centre (DC) said that the
establishment of new funds undermined the transparency of the
budget, while Dario Vukic of the Croatian Democratic Union (HDZ)
recalled that the government had signed an agreement with the
International Monetary Fund and that it should not be establishing
extra-budgetary funds while the stand-by arrangement with the IMF
lasts.
The Croatian Peasants' Party (HSS) recognises the government's
intention to make a positive turn in the economic policy,
employment, entrepreneurship through the funds, but there are
certain uncertainties, Marijan Marsic said.
It is not clear why we are establishing two funds when their goals
are similar, and profits the same, he said. Marsic stressed that the
setting up of the funds decreased the transparency of public
finances and requested that fund resources be used for certain set
projects.
The Social Democratic Party (SDP), Ivan Leko said, supports the
establishment of the funds, and requests an urgent draft Croatian
regional development strategy.
Davor Juric of the Croatian People's Party/Slavonia-Baranja
Croatian Party/Primorje-Gorski Kotar Party bench suggested that
agencies for regional development also be established at the level
of counties.
(hina) lml