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PARLIAMENT ADOPTS STATE BUDGET FOR 2002

ZAGREB, Dec 12 (Hina) - The Croatian parliament adopted the state budget for 2002 in the amount of 76.887 billion kuna (approx. US$ 9.3 billion) in the early hours of Wednesday. Following a day-long voting on around 400 amendments moved to the budget draft, 82 MPs voted in favour and five abstained. The government managed to keep the budget within set frameworks, turning down all the amendments the MPs would not withdraw. Vladimir Seks, the president of the strongest opposition party, the Croatian Democratic Union (HDZ), expressed deep discontent at the fact that not one of the HDZ amendments was adopted. The government made reallocations within the budget through its own amendments, claiming it had thus acknowledged many moved by the MPs. In line with the government amendments, revenues from custom duties are decreased by 50 million kuna, another 100 million kuna is secured for the Regional Development Fund, and 20 million for
ZAGREB, Dec 12 (Hina) - The Croatian parliament adopted the state budget for 2002 in the amount of 76.887 billion kuna (approx. US$ 9.3 billion) in the early hours of Wednesday. Following a day-long voting on around 400 amendments moved to the budget draft, 82 MPs voted in favour and five abstained. The government managed to keep the budget within set frameworks, turning down all the amendments the MPs would not withdraw. Vladimir Seks, the president of the strongest opposition party, the Croatian Democratic Union (HDZ), expressed deep discontent at the fact that not one of the HDZ amendments was adopted. The government made reallocations within the budget through its own amendments, claiming it had thus acknowledged many moved by the MPs. In line with the government amendments, revenues from custom duties are decreased by 50 million kuna, another 100 million kuna is secured for the Regional Development Fund, and 20 million for the first instalment of damages to the Esuli. Additional funds have been secured for culture, science and scientific projects in the amount of 50 million kuna, while 67.5 million have been secured for the judiciary. On the other hand, expenses for business trips, office costs, and representation have been cut. Around 140 million kuna will be saved from a range of other items. The government was given the "green light" for making certain changes within the 14.1 billion kuna envisaged for salaries, i.e. the government can restructure salaries. For the first time, the new state budget includes pension and health insurance funds and the employment bureau. The budget reduces indebtedness and the deficit from this year's 5.3 to 4.25 percent of Gross Domestic Product, as well as the current deficit, which will drop to below 700 million kuna, and increases saving. The 2002 budget is development-oriented and socially just, resuming the policy of increasing pensions and more children receiving child's allowance. Parliament adopted conclusions moved by the ruling coalition's Peasants' Party (HSS) which bind the government to prepare the establishment of a specialised agency for mediation and cooperation among the agricultural, food-processing and tourist industries. Parliament also adopted the Law on the Execution of the State Budget for 2002. The majority gave the government the green light to execute internal reallocations of up to one percent of budgetary expenditure in order to support begun reforms, especially in the agriculture. Ivan Suker of the HDZ vehemently objected to this, saying it represented a "dangerous precedent" which might lead to a mini- revision of the budget, without parliament's supervision. Finance Minister Mato Crkvenac countered by saying that in other states, neighbouring Slovenia included, the government was authorised to reallocate some budgetary funds. Funds intended for reforms cannot be precisely set in advance and the government will notify parliament every three months, said the minister, confident the 2002 budget is the most transparent one to date. (hina) ha

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