GOVT INFORMS UPPER HOUSE OF AMENDMENTS TO BUDGET

ZAGREB, March 22 (Hina) - The value of amendments the Government has motioned to the government budget is 324 million kuna (US$40.5 million), for now, as the Government session is not over yet, Deputy Finance Minister Damir Kustrak said Wednesday. However, he added, this does not mean the budget of 48.3 billion kuna (US$6 billion) would overflow, but the funds within it would be reallocated. Through its amendments the Government suggested a significant increase in resources for capital investments. For example, the Government motioned a fund increase for the Istrian Epsilon of 230 million kuna (US$28.75), considering the fact that this was an international commitment signed by the former Government and cannot be ignore, Kustrak said. Furthermore, the resources for the Maritime Affairs, Transport and Communications Ministry will be increased for the construction of roads and by-passes, and the reconstruction of bridges destroyed in the war. Among other funds, increased are those of the Croatian homeland War Soldiers Ministry and the Health Ministry. Also, the Government will motion to the Parliament draft amendments to the Law on financing units of local government and self- government, suggesting an increase for cities and municipalities in income tax from 25 to 32 per cent, and counties from five to eight per cent. With these amendments the Government is not giving up its intention to pay back the state's debts of 3.6 billion kuna (US$450 million) , because it deems that this would start solutions to the problem of illiquidity. After explanations to the Government's amendments, the Croatian National Parliament's House of Counties gave Kustrak a pause of an hour to voice views on amendments from the Upper House. Before the pause Kustrak said the Government had not even discussed amendments from the Upper House for the simple reason that the Upper House had dismissed the budget. (hina) lml mm