ZAGREB, Nov 9 (Hina) - The Croatian government on Thursday adopted a draft state budget for next year, amounting to 50.855 billion kuna, and sent it into parliamentary procedure. The draft is aimed at disburdening the economy,
protecting social rights and securing development. The 2001 budget is an austerity budget, with pronounced social sensitivity and its share in the Gross Domestic Product is decreased (from this year's 30.8 to below 30 percent), Finance Minister Mato Crkvenac said at today's government session. Most of the burden will have to be shouldered by employees receiving their wages from the budget. Budgetary allocations for ministries with a large number of employees will be reduced, and salaries will have to be limited in the new circumstances, Crkvenac said, adding economies would be made in the purchase of equipment, furniture, and computerisation as well. He emphasised the need to reduce t
ZAGREB, Nov 9 (Hina) - The Croatian government on Thursday adopted a
draft state budget for next year, amounting to 50.855 billion kuna,
and sent it into parliamentary procedure.
The draft is aimed at disburdening the economy, protecting social
rights and securing development. The 2001 budget is an austerity
budget, with pronounced social sensitivity and its share in the
Gross Domestic Product is decreased (from this year's 30.8 to below
30 percent), Finance Minister Mato Crkvenac said at today's
government session.
Most of the burden will have to be shouldered by employees receiving
their wages from the budget. Budgetary allocations for ministries
with a large number of employees will be reduced, and salaries will
have to be limited in the new circumstances, Crkvenac said, adding
economies would be made in the purchase of equipment, furniture,
and computerisation as well.
He emphasised the need to reduce the state spending. We are spending
more than we can afford, he warned.
As regards the revenues, the draft budget for next year envisages
revenues worth 53 billion kuna, of which taxes account for 38.2
billion. The share of income and profit taxes in the revenues will
decrease significantly given a tax reform which has been sent into
parliamentary procedure. A total of 12.7 billion kuna are expected
from the privatisation process next year. Companies to be
privatised include the Adriatic Oil Pipeline (JANAF), 'Croatia
osiguranje' insurance company, and some banks (such as Dubrovacka
Banka and Croatia Banka).
Prime Minister Racan said the draft could be discussed both by the
government and parliament but exclusively in terms of its items.
There can be no increase of the determined limits. It is not
possible to discuss new funds without saying where and what
economies can be made, he said.
(hina) rml