ZAGREB, March 4 (Hina) - The Croatian Government on Saturday adopted a draft budget for this year, planned with 48.3 billion kuna (about US$6.2 billion). The draft budget envisages the payback of at least 3.6 billion kuna (about US$1
billion) of state debt. The budget also includes a reduction in salaries for users of the government budget by five per cent, Prime Minister Ivica Racan said after the Government's closed session. "In drafting the budget the Government had to start off from the difficult situation and count on only what we have," Racan said. This year's budget will nominally be one to two per cent lesser than last year's, but the reduction is realistically significantly greater when taken into consideration the fact that the budget will be taking on the payback of debt, Racan said. The planned amount of 48.3 billion kuna is the expenditure side of it. In the consolidated budget a deficit is planned of around 1.3 billion kuna (about
ZAGREB, March 4 (Hina) - The Croatian Government on Saturday
adopted a draft budget for this year, planned with 48.3 billion kuna
(about US$6.2 billion).
The draft budget envisages the payback of at least 3.6 billion kuna
(about US$1 billion) of state debt.
The budget also includes a reduction in salaries for users of the
government budget by five per cent, Prime Minister Ivica Racan said
after the Government's closed session.
"In drafting the budget the Government had to start off from the
difficult situation and count on only what we have," Racan said.
This year's budget will nominally be one to two per cent lesser than
last year's, but the reduction is realistically significantly
greater when taken into consideration the fact that the budget will
be taking on the payback of debt, Racan said.
The planned amount of 48.3 billion kuna is the expenditure side of
it.
In the consolidated budget a deficit is planned of around 1.3
billion kuna (about US$342 million), Finance Minister Mato
Crkvenac said.
A tax reduction has also been envisaged, which should contribute to
lifting some burden off the economy and stimulating economic
development, Racan said.
The draft budget will be sent to the Parliament on Monday.
In drawing up the government budget, which was adopted unanimously,
the Government relied on four principles -- a decrease in
expenditure, payback of debt, non-aggravation of the difficult
social situation and strengthening of development components of
the budget, by increasing resources for science, education and
culture.
The precondition for realising the budget is a radical curbing of
all unnecessary utility and other expenses.
The Government is preparing the budget in a difficult situation --
with the state's foreign debt in excess of US$9 billion, internal
debts of about 9 billion kuna (about US$1.2 billion) and at least 15
million kuna (about US$2 billion) state guarantees, of which most
will burden the government budget.
"Under such circumstances this Government and Parliament must show
success," Racan said.
This year's budget must be adopted by the Parliament by the end of
the month, when the Decision on the Temporary Functioning of Public
Expenditure from January 1 until March 31 expires.
(hina) lml