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CROATIAN FIN MIN: 2001 BUDGET DRAWN UP WITHOUT POLITICAL PRESSURE

ZAGREB, Nov 10 (Hina) - Croatian Finance Minister Mato Crkvenac on Friday said the Government had based a draft 2001 budget only on economic foundations and it included no political compromise between parties in the ruling coalition which might lead to its higher amount.
ZAGREB, Nov 10 (Hina) - Croatian Finance Minister Mato Crkvenac on Friday said the Government had based a draft 2001 budget only on economic foundations and it included no political compromise between parties in the ruling coalition which might lead to its higher amount.#L# Earlier in the day International Monetary Fund (IMF) mission assessed it would be better that the final amount of the budget were smaller but they said they were aware that this compromise was also good taking into the consideration that Croatia had a coalition government. On Friday afternoon Crkvenac told reporters that items for funds to be earmarked from the budget could hardly be lower than 50.855 billion kuna at the moment. The next year would be specific owing to the obligation to return the debt to pensioners, items for the child allowance and the respect for all social rights, he explained. The Croatian minister held that negotiations with the IMF on the conclusion of a new stand-by arrangement were progressing well, and he expected the resumption of the talks in the mid-December. "The IMF does not ask from us anything what is not the objectives and policy of this Government," he said. The IMF mission has recommended that trends in salaries paid from the state budget should be in accordance with the growth in the Gross Domestic Product (GDP) and there have been no objections about this matter. There will be no increase in salaries and income earmarked from the budget in the next three year. This, however, does not mean that individual salaries will not rise as the number of employees will partly be reduced, Crkvenac added. (hina) jn ms

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