ZAGREB, Oct 11 (Hina) - The House of Representatives on Wednesday evening finished a discussion on a report on the execution of the state budget in the first half of this year. The voting, however, was postponed for tomorrow as there
was no sufficient number of MPs in the Sabor hall. Ivan Suker, who spoke on behalf of the Croatian Democratic Union (HDZ) bench, was very much critical. He said he was worried by the rise in the state debt which totalled 4.5 billion kuna in the first six months, and with the issuance of the 'samurai' bonds worth three billion kuna and announced five-billion-kuna loan for bridging a deficit it would reach the figure of 12.5 billion kuna. Suker was also concerned over a budgetary deficit of 1.3 billion kuna. Dragica Zgrebec reacted upon this saying that a budgetary deficit was lower as against last year. She added that the incumbent Government had inherited unpaid state bonds of 9.4 bil
ZAGREB, Oct 11 (Hina) - The House of Representatives on Wednesday
evening finished a discussion on a report on the execution of the
state budget in the first half of this year. The voting, however,
was postponed for tomorrow as there was no sufficient number of MPs
in the Sabor hall.
Ivan Suker, who spoke on behalf of the Croatian Democratic Union
(HDZ) bench, was very much critical. He said he was worried by the
rise in the state debt which totalled 4.5 billion kuna in the first
six months, and with the issuance of the 'samurai' bonds worth three
billion kuna and announced five-billion-kuna loan for bridging a
deficit it would reach the figure of 12.5 billion kuna. Suker was
also concerned over a budgetary deficit of 1.3 billion kuna.
Dragica Zgrebec reacted upon this saying that a budgetary deficit
was lower as against last year. She added that the incumbent
Government had inherited unpaid state bonds of 9.4 billion kuna and
a budgetary deficit of two billion kuna. Zgrebec explained that six
months was a too short period for reversing negative trends, but
positive headway was already visible. She also said illiquidity was
lessened in the economy thanks to the settlement of 3.3 billion kuna
debt inherited from former authorities.
Reacting upon criticism of the opposition that the financial
situation in the pension and health insurance funds was critical,
Deputy Finance Minister Damir Kustrak said the Croatian Pension
Insurance Institute at the moment had no penny of a loan, which had
not been registered for years.
Kustrak explained that the Institute for Health Insurance had
issued bonds valued 1.7 billion kuna, which solved a great part of
debts in the public health system. The fact that the bonds are very
liquid and that their price goes above their nominal price at the
Zagreb Stock Exchange, can also be used as the confirmation that
this is a very god manner for solving problems, Kustrak added.
While opposition MPs were critical of the report, deputies of the
six parties, which make up the ruling coalition, underlined its
positive sides.
In the mind of Damir Kajin (the bench of the Istrian Democratic
Alliance or IDS), the report clearly shows the basic distinction
between principles of the former and current authorities. The
former authorities were engaged in most visible projects such as
reconstruction of schools, health care centres or roads, but failed
to pay their obligations which were left for the successor, while
the incumbent authorities are slashing the state spending and
capital investments but are settling regularly their obligations
and simultaneously paying back the inherited debts.
(hina) jn ms