ZAGREB, Oct 11 (Hina) - Funds for the budget are coming in according to plans, and the Government settle its financial obligations regularly, Croatian Deputy Finance Minister Damir Kustrak told the national parliament's House of
Representatives on Wednesday. Thanks to such a situation, salaries from the state budget are paid in the first week every month and we also manage to pay pensions earlier, Kustrak said adding that, for instance, all pensions for September would be paid by the end of this week. Expounding a report on the execution of the state budget in the first half of 2000, Deputy Finance Minister told the Sabor's lower house that revenue from the Value Added Tax rose by 10 percent and from excise duties by 18 percent as against the first half of 1999, which indicated an increase in personal consumption. A fall was registered only in capital incomes with 2.3 billion kuna in comparison with
ZAGREB, Oct 11 (Hina) - Funds for the budget are coming in according
to plans, and the Government settle its financial obligations
regularly, Croatian Deputy Finance Minister Damir Kustrak told the
national parliament's House of Representatives on Wednesday.
Thanks to such a situation, salaries from the state budget are paid
in the first week every month and we also manage to pay pensions
earlier, Kustrak said adding that, for instance, all pensions for
September would be paid by the end of this week.
Expounding a report on the execution of the state budget in the
first half of 2000, Deputy Finance Minister told the Sabor's lower
house that revenue from the Value Added Tax rose by 10 percent and
from excise duties by 18 percent as against the first half of 1999,
which indicated an increase in personal consumption.
A fall was registered only in capital incomes with 2.3 billion kuna
in comparison with the planned eight billion. This deficit was
caused by the postponement of the second stage of the privatisation
of the Croatian Telecommunications ('Hrvatske Telekomunikacije)
and will be bridged by a loan.
The first six months of 2000 saw a budgetary deficit of 1.29 billion
kuna, and this amount is higher than the planned figure for the
entire year. But, in that period, the Government settled the
largest part of the foreign debt which should be paid this year,
Kustrak explained. In addition, the Government is paying back its
internal debts, which substantially improves liquidity in the
country.
Kustrak commented on macroeconomic trends in Croatia.
The Gross Domestic Product (GDP) rose by four percent in the first
quarter, and it is continuing to rise so that it will come to 2.8
percent or even higher at the annual level. Export is rising more
speedily than import, the inflation is under control and the
increase in retail prices is expected to be between 5 and 6 percent
by the end of this year. What worries the Government is a high
unemployment rate and the authorities are doing all they can to
reverse the trend in the jobless rate by the end of 2000.
The House of Representatives subsequently discussed the report.
(hina) jn ms