ZAGREB, March 15 (Hina) - The House of Counties of the Croatian parliament on Wednesday rejected a state budget put forward by Premier Ivica Racan's government. This is the first time in the seven years the Upper House has been active
that it refused to endorse the state's basic financial document. Against the draft state budget was the majority of the Croatian Democratic Union (HDZ), which has majority in the Upper House, and representatives of the Croatian Party of Rights (HSP).
ZAGREB, March 15 (Hina) - The House of Counties of the Croatian
parliament on Wednesday rejected a state budget put forward by
Premier Ivica Racan's government.
This is the first time in the seven years the Upper House has been
active that it refused to endorse the state's basic financial
document.
Against the draft state budget was the majority of the Croatian
Democratic Union (HDZ), which has majority in the Upper House, and
representatives of the Croatian Party of Rights (HSP).#L#
Over two days, 56 of 68 MPs in the Upper House discussed the first
reading of this year's budget, during which time the political
opponents, on one side the HDZ and the HSP, and on the other the
coalition which earlier this year won elections for the House of
Representatives, did not change their view of draft.
MPs from the six-party coalition which formed the new government
pointed out the draft budget could not have been different given the
difficult economic and financial situation which the new
government inherited from the previous, HDZ-led one.
HDZ MPs claimed what the government offered in the draft budget was
significantly at odds with promises made before elections.
They mentioned, among else, that officials' privileges and
salaries had not been cut as promised, that plans included to cut
budgetary users' salaries even though it had been stated otherwise,
and that saving was done in the wrong places.
The draft budget is conservative, conceptually poor, neither
development-, nor socially-, nor saving-oriented, HDZ MPs
asserted.
Miroslav Rozic of the HSP said there was only one reason he was
against the draft budget, namely because it had an HDZ character.
Deputy Finance Minister Damir Kustrak said the draft budget
included some of the pre-electoral promises. He announced the
government as of April 4 would begin with tax relief by raising
personal tax deductions. Plans also include lower tariffs, which
Kustrak said means lower prices.
The Upper House will forward its negative opinion of this year's
draft budget to the Lower House, which can adopt it independently of
the negative opinion. If unhappy with this, the Upper House may
exert its vetoing right and seek a new debate. Even though the
process requires a certain time, those in the know say that will not
prevent the adoption of this year's budget within deadlines, namely
by the end of this month, when a temporary, three-month budget goes
out of force.
Two HDZ MPs refrained from voting today, while four endorsed the
draft budget alongside MPs from the ruling six-party coalition.
(hina) ha jn