FIN. MIN. SAYS BUDGET'S CHIEF PARAMETRES REMAIN UNCHANGED

ZAGREB, Dec 11 (Hina) - The government's new version of the draft state budget for 2002 brings the same financial policy and chief parameters as the original one, with all the changes referring to reallocations, the finance minister told parliament on Tuesday, defending the final budget draft and the government's amendments. The six amendments moved by the government took parliamentary debates as the starting point, said Minister Mato Crkvenac. The amendments reduce customs revenue by 50 million kuna, propose ensuring another 100 million for the Regional Development Fund, and earmarking additional funds for culture, science, and the judiciary. The amendments also propose ensuring for national minorities the funds they had in this year's revised budget, namely 19 million kuna, and earmarking 20 million for damages to the Esuli. The government seeks saving on official trips, representation, and office costs, and has found room in a series of items to save another 140 million kuna. One of the amendments refers to the salaries of budgetary beneficiaries. The total amount for the salaries, 14.1 billion, would not be changed but certain reallocations could be made in the course of the year. Crkvenac said the government would continue implementing resolute rationalisation measures in the administration, employment, even in items pertaining to salaries. The government seeks parliament's approval to carry out internal reallocations of up to one percent of budgetary expenditure, around 760 million kuna, to provide room to support reforms. Minister Crkvenac dismissed claims from the opposition's Croatian Democratic Union that such an authority would give the government the chance to manage budgetary funds without parliament's influence and that it had no footing in legislation. If the need for such a reallocation occurred during the year, the government would notify the parliament, said Crkvenac. The latest budget draft reduces the budgetary deficit from this year's 5.3 to 4.25 percent of Gross Domestic Product, as well as the current deficit and indebtedness, and increases saving. The finance minister reiterated the draft was socially just and development-oriented. The government insists the 76.887 billion kuna (approx. US$ 9.3 billion) amount for next year's budget must not be changed, and that certain needs should be met through reallocations. (US$1 = 8.27 kuna) (hina) ha sb