ZAGREB, Dec 17 (Hina) - The Croatian Employers' Union (HUP) Economic Council believes the establishment of non-budgetary funds and financial organisations has reduced the transparency and comparability of and possibility of democratic
control over public finances. The HUP Council reminds in the November issue of the Economic Monitor the fiscal policy has to be transparent to enable a democratic control over public finances, in line with the rules of democracy. Among else, this means that each item in public revenues and expenditures needs to be noted in the state budget, and not in various non-budgetary funds or other organisations and thus placed out of control of the parliament and the public. Also apparent are the state's efforts to significantly increase direct interventions in the economy, which, according to the economists making up the HUP Council, could result in resource allocation without th
ZAGREB, Dec 17 (Hina) - The Croatian Employers' Union (HUP)
Economic Council believes the establishment of non-budgetary funds
and financial organisations has reduced the transparency and
comparability of and possibility of democratic control over public
finances.
The HUP Council reminds in the November issue of the Economic
Monitor the fiscal policy has to be transparent to enable a
democratic control over public finances, in line with the rules of
democracy. Among else, this means that each item in public revenues
and expenditures needs to be noted in the state budget, and not in
various non-budgetary funds or other organisations and thus placed
out of control of the parliament and the public.
Also apparent are the state's efforts to significantly increase
direct interventions in the economy, which, according to the
economists making up the HUP Council, could result in resource
allocation without the acknowledgement of market criteria and
stronger corruption.
Referring to the draft state budget for 2002, the Council believes
it was presented in a completely non-transparent, incomparable and
thus incomprehensible form, unacceptable to democratic decision-
making. Besides, the redistribution of various subsidies and
capital expenditures between the budget and the funds has been
arbitrary, making a report on the current, primary and overall
deficit, as well as the revenues and expenditures of individual
budgetary users, vague.
Institutions such as the Croatian Bank for Reconstruction and
Development, the Croatian Privatisation Fund, the Croatian Roads
and Croatian Motorways should also find their place in the
consolidated public finances.
(hina) np sb