ZAGREB, Aug 25 (Hina) - The starting point of a state budget in the coming three years is the expected rise of 2.8 percent in the Gross Domestic Product this year and the subsequent rise in the coming years so that 2003 can see a
four-percent and 2004 a five-percent increase in the GDP.
ZAGREB, Aug 25 (Hina) - The starting point of a state budget in the
coming three years is the expected rise of 2.8 percent in the Gross
Domestic Product this year and the subsequent rise in the coming
years so that 2003 can see a four-percent and 2004 a five-percent
increase in the GDP.#L#
These are minimum and badly needed growth rates, Finance Minister
Mato Crkvenac told a meeting at Plitvice Lakes on Friday.
At this event, organised by the Finance Ministry, first drafts of
fiscal projections for the coming three years were presented.
The meeting, which began on Thursday night and will end on Sunday,
is gathering Government officials, parliamentarians, President
Stjepan Mesic's chief advisor on economic issues, Croatian
National Bank and Chamber of Commerce representatives, unionists
and employers who are expected to consider projections of budgets
for 2001-2003, framework strategies for the economic progress,
changes in the fiscal policies and starting points for a social
pact.
According to a statement released by the Finance Ministry on
Friday, a projection of budgets for 2001-2003 forecasts a rise in
the employment and the gradual decrease in the portion of the public
expenditure in the GDP, which now totals 54.4 percent.
These plans also count on the growth in the export at the annual rate
of 8.5 percent.
Economic projections divided participants at the meeting into two
opposing groups. Some of them such as Ministers of Economy, Public
Works and Reconstruction, and of European Integration as well as
Mesic's advisor on economic issues believe that it is too modest and
too little for attempts to help Croatia to catch up with other
countries in transition.
The other group including the central bank's governor, the heads of
the employers' association and the chamber of commerce hold that
the projections, drafted by the Finance Ministry, are real.
The statement quoted excerpts from Friday's discussion.
Governor Zeljko Rohatinski described the projections as real,
explaining that although a higher and speedier growth was necessary
it was not within real expectations. He announced that the Croatian
National Bank (HNB) Council would soon consider deeper changes in
the system of statutory reserves such as the unification of
deposits in kuna and foreign currencies.
President Mesic's advisor Stjepan Zdunic said the 3-4 percent-high
growth would not be sufficient and suggested that the stability of
the exchange rate and prices should not be the main target but that
relevant factors should also think about the rise in employment.
The Chamber of Commerce head, Nadan Vidosevic, said that to date the
fiscal and monetary polices were uncoordinated - the fiscal police
was extensive and the monetary one rigid. However, the fiscal
policy is being now tightened, whereas the monetary policy is being
promoted, Vidosevic said viewing such change as good.
Commenting on the accomplishment of economic aims, a Deputy Prime
Minister, Slavko Linic, pointed to the judiciary as an element that
hampers those efforts, due to its inefficiency. Linic said
businessmen could not rely on the judicial system and stressed that
problems in that field must be solved in the coming six months.
The statement quoted a leader of the Federation of the Independent
Unions of Croatia (SSSH), Vitomir Begovic, as endorsing the caution
of the Finance Ministry in the elaboration of the projections.
Another unionist, Vilim Ribic, advocated the rise in funds
earmarked from the GDP for science and education from the current
1.37 percent to at least two (2) percent in the next four years.
(hina) ms