ZAGREB, Nov 7 (Hina) - The Ministry of Finance will tonight have a harmonised working version of the 2001 budget on a projected expenditure level of 50.855 billion kuna, Finance Minister Mato Crkvenac told reporters in Zagreb on
Tuesday.
ZAGREB, Nov 7 (Hina) - The Ministry of Finance will tonight have a
harmonised working version of the 2001 budget on a projected
expenditure level of 50.855 billion kuna, Finance Minister Mato
Crkvenac told reporters in Zagreb on Tuesday. #L#
The budget for next year will relieve the economy and its share in
Gross Domestic Product (GDP) will be reduced. The first trait of the
budget is that it respects all established rules - from the rights
of soldiers and pensioners through social rights to child's
allowance and other rights.
The budget is aimed at stimulating development and employment
through increased subsidies for agriculture, tourism, the
shipbuilding industry, small businesses and in particular export,
said Crkvenac.
The third trait of the 2001 budget is economising. Most economies
will be made by reducing capital expenditures, the wage budget, and
material expenditures.
However, reducing capital expenditures does not mean that there
will be no economic development or road construction, Crkvenac
said, adding the government would initiate the establishment of a
state joint stock company for the construction and maintenance of
roads.
Crkvenac also announced the reduction of the number of employees in
state administration, as well as the reorganisation of some
salaries and expenditures.
Asked how the government intended to increase employment, he said
that all macro-economic conditions which encourage
entrepreneurship, employment and the influx of foreign capital
would be created by the end of the year. On the basis of this, the
government will devise concrete programmes and activities which
will contribute to reducing unemployment, he said.
Asked to comment on President Stipe Mesic's statement that "a
certain degree of devaluation" was needed, Ckrvenac said
devaluation would not happen.
Devaluation is possible only when the exchange rate is regulated
administratively, while in Croatia the exchange rate is regulated
on the market, Crkvenac said, adding one had to sustain economic
stability, the stability of prices and, accordingly, the stability
of the exchange rate.
However, in the long run the exchange rate will become real and
export-stimulating. It is not good to speak about devaluation in
this way because it can entice inflationary expectations.
"I claim that there is no reason for concern regarding inflation and
devaluation," Crkvenac concluded.
(hina) jn rml