ZAGREB, Nov 3 (Hina) - The Government's co-ordination bodies on Monday held a session to find a way to cut the budgetary expenses by another 1.5 billion kuna so that this sum can match an amount of 50 billion and 855 million kuna
planned in a projection of a budget for the next year, Finance Minister Mato Crkvenac said. Because of the priority given to the recovery of the economy and increase in employment, the Government cannot and will not give up from the defined volume of the 2001 draft budget of 50.855 billion kuna for current expanses. After last Thursday's session of the Government it was calculated that the difference between the budgetary receipts and payments could come to five (5) billion kuna, and during the weekend and today the spending was cut by some 3.5 billion kuna and we are seeking ways to reduce it by additional 1.5 billion kuna, Crkvenac told reporters prior to Mond
ZAGREB, Nov 3 (Hina) - The Government's co-ordination bodies on
Monday held a session to find a way to cut the budgetary expenses by
another 1.5 billion kuna so that this sum can match an amount of 50
billion and 855 million kuna planned in a projection of a budget for
the next year, Finance Minister Mato Crkvenac said.
Because of the priority given to the recovery of the economy and
increase in employment, the Government cannot and will not give up
from the defined volume of the 2001 draft budget of 50.855 billion
kuna for current expanses.
After last Thursday's session of the Government it was calculated
that the difference between the budgetary receipts and payments
could come to five (5) billion kuna, and during the weekend and
today the spending was cut by some 3.5 billion kuna and we are
seeking ways to reduce it by additional 1.5 billion kuna, Crkvenac
told reporters prior to Monday's session of the governmental co-
ordination bodies for internal and foreign affairs, economy and
social activities.
The necessary cuts are to be made in the fields of salaries paid from
the state budget, capital investments, material costs and some
subsidies. Next year should see a process of de-centralisation
which will lessen some burdens at the state level.
Crkvenac explained that the next year's budget would take special
care about items for economic development, incentives to the
entrepreneurship and social welfare.
As regards the revenues, privatisation should bring 7.2 billion
kuna next year. In addition, five (5) billion should also be ensured
from the second stage of the privatisation of Croatia's
telecommunications company 'Hrvatski Telekom', which has been
postponed for 2001, and the Government incurred a debt for this
amount from abroad this year, the minister added. There are no
intention to take a loan from abroad next year, he said.
In 2001 the country should pay the instalments of the public debt
worth some 6 billion, or by two times higher than in 1999. We should
ensure about 8 billion kuna to settle them and pay interest rates
from old debts, Crkvenac said.
He reiterated that the entire construction of the 2001 budget was
directed to further disburdening of the economy and stimulation of
the job creation.
The tax revenues will remain quite at the same level as in this
year's revised budget.
Besides a rise in the Gross Domestic Product, the portion of the
state budget in the GDP will be smaller by some 2 percent points as
against this year. And by this amount, more money will remain in the
economy, he explained.
The Government is expected to consider the 2001 draft budget and
elements of a projection of budgets for next three years at its
session on Thursday.
(One US dollar is approximately 8.7 kuna.)
(hina) jn ms