ZAGREB, July 26 (Hina) - The new economic policy is giving the first results which this year will not be spectacular but do mark trend changes, Croatian Finance Minister Mato Crkvenac told Wednesday's government session which adopted
a report of the execution of the state budget in the January 1 - June 30 period. Budgetary revenues in this year's first six months amounted to 21.4 billion kuna (US$2.64 billion), an increase of 15.67 percent against the same time last year. Expenditure totalled 22.7 billion (US$2.802 billion), and the deficit 1.4 billion kuna (US$172.8 million). According to the report, 45.5 percent of total revenues and 46.9 percent of total expenditure expected for this year were realised in the first six months. Minister Crkvenac said we should be satisfied with the execution of the state budget thus far in view of all the difficulties. He added gross national product was expected
ZAGREB, July 26 (Hina) - The new economic policy is giving the first
results which this year will not be spectacular but do mark trend
changes, Croatian Finance Minister Mato Crkvenac told Wednesday's
government session which adopted a report of the execution of the
state budget in the January 1 - June 30 period.
Budgetary revenues in this year's first six months amounted to 21.4
billion kuna (US$2.64 billion), an increase of 15.67 percent
against the same time last year. Expenditure totalled 22.7 billion
(US$2.802 billion), and the deficit 1.4 billion kuna (US$172.8
million).
According to the report, 45.5 percent of total revenues and 46.9
percent of total expenditure expected for this year were realised
in the first six months. Minister Crkvenac said we should be
satisfied with the execution of the state budget thus far in view of
all the difficulties. He added gross national product was expected
to rise by 2.8 percent this year.
Illustrating expenditure, the minister said current expenses had
been subjected to the strictest saving, which had to be done in view
of settling arrears. He explained the former government's arrears
were very high and weighed down the state budget in this year's
first half, but pointed out that 97 percent of 3.6 billion kuna
(US$444 million) of government arrears planned to be settled from
this year's budget had already been paid to the economy.
Crkvenac said 5.6 billion (US$691 million) of the former
government's 9.5 billion kuna (US$1.173 billion) in total arrears
had been returned, adding this year the government had issued
warranties worth 2.6 billion kuna (US$321 million), including 1.7
billion (US$210 million) for the health sector.
The finance minister said the execution of the state budget was
accompanied by significant changes in some economic trends,
including higher industrial production, higher trade, record
results expected in tourism, a better balance of payments, smaller
unpaid debts which in this year's first four months dropped by 2.2
billion kuna (US$272 million), and an average salary of 3,279 kuna
(US$404.8) in June.
In its conclusions on the report following a brief debate, the
government evaluated the results were encouraging and that a major
part of the government's debts had been settled. The report will be
forwarded to parliament.
Prime Minister Ivica Racan said the government was aware the
struggle for stability and coming out of the economic crisis called
for saving-based conduct on the part of all budgetary
beneficiaries. The government in its conclusions points to the need
of re-examining budgetary expenditure and redistributing it if
necessary.
The government bound all ministries to halt the creation of new
obligations, and if that is not possible, to ensure financing by
restructuring budgetary expenditure. The conclusions also
recommend that budgetary beneficiaries step up their share in the
realisation of a state treasury project.
Today's government session was the last before a summer recess. The
next session is scheduled for August 24.
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