ZAGREB, March 14 (Hina) - We are faced with, among other things, a debt of 9.3 billion kuna (about US$1.18 billion) which was drawn from one budget to the next, and this Government finally decided to publicly indicate it and pay back
some of it, deputy Finance Minister Damir Kustrak said on Tuesday before the Croatian National Sabor's House of Counties, explaining the draft Government Budget for the year 2000. The amount is 2.9 billion kuna (US$367 million) of debts of many ministries and other budget users, 3.2 billion kuna (US$405 million) of debt of the Croatian Health Insurance Institute, 2.4 billion kuna (US$304 million) of debt for secured savings and about 775 million kuna (US$98.1 million) debt of the Croatian Bureau for Pension Insurance to banks. A large part of the economy is blocked because of these debts, Kustrak said. In order to spur economic activity, the Government has this
ZAGREB, March 14 (Hina) - We are faced with, among other things, a
debt of 9.3 billion kuna (about US$1.18 billion) which was drawn
from one budget to the next, and this Government finally decided to
publicly indicate it and pay back some of it, deputy Finance
Minister Damir Kustrak said on Tuesday before the Croatian National
Sabor's House of Counties, explaining the draft Government Budget
for the year 2000.
The amount is 2.9 billion kuna (US$367 million) of debts of many
ministries and other budget users, 3.2 billion kuna (US$405
million) of debt of the Croatian Health Insurance Institute, 2.4
billion kuna (US$304 million) of debt for secured savings and about
775 million kuna (US$98.1 million) debt of the Croatian Bureau for
Pension Insurance to banks.
A large part of the economy is blocked because of these debts,
Kustrak said.
In order to spur economic activity, the Government has this year
decided to return 3.9 billion kuna (about US$126.5 million) of
outstanding debts.
When this amount is taken from the budget, it would amount to 44.7
billion kuna (about US$5.66 billion), which, with inflation, would
represent a budgetary decrease of about 15 per cent, he said.
Moreover, the Government will soon suggest a decrease in income
tax, profit tax and customs, which should additionally unburden the
economy. This will lessen the current profits of the budget by about
1.5 billion kuna (US$190 million) and enable the economy to "breath
more easily", Kustrak said.
He explained that the suggested five per cent decrease of gross
income of public officials would in the end present a decrease in
net incomes of only one to two per cent. The Government will motion
an increase of the non-tax income basis from 1,000 to 1,200 kuna.
The Government is discussing the income decrease with unions so a
temporary six-month agreement could be reached until a different
income system for public officials is drawn up.
The budget of 48.3 billion kuna (about US$6.11) represents the
limit of the maximally exhausted economy which cannot give more
than it does, Kustrak said.
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