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PM: GOVT. WON'T FINANCE BUDGETARY EXPENSES WITH DEBTS, INFLATION

ZAGREB, Dec 5 (Hina) - Prime Minister Ivica Racan said on Tuesday the government resolutely objected to financing budgetary expenses with new debts or inflation, but had nothing against not tapping childbirth allowance if other expenses in the budget might be cut. Racan was responding to inquiries from MPs during Question Morning in parliament's House of Representatives. "This government is not proposing a budget which is not realistic," he told Jadranka Kosor of the Croatian Democratic Union who asked if the government might reconsider reducing childbirth allowances at Wednesday's session. Speaking about the need of respecting realistic revenue to cover budgetary expenses, Racan said the current situation was "Croatia's historical chance to develop and create new jobs." Asked by Kosor to comment on a recent statement by the foreign minister to the effect that "Croatia will extend humanitarian aid to re
ZAGREB, Dec 5 (Hina) - Prime Minister Ivica Racan said on Tuesday the government resolutely objected to financing budgetary expenses with new debts or inflation, but had nothing against not tapping childbirth allowance if other expenses in the budget might be cut. Racan was responding to inquiries from MPs during Question Morning in parliament's House of Representatives. "This government is not proposing a budget which is not realistic," he told Jadranka Kosor of the Croatian Democratic Union who asked if the government might reconsider reducing childbirth allowances at Wednesday's session. Speaking about the need of respecting realistic revenue to cover budgetary expenses, Racan said the current situation was "Croatia's historical chance to develop and create new jobs." Asked by Kosor to comment on a recent statement by the foreign minister to the effect that "Croatia will extend humanitarian aid to residents of Serbia," the prime minister said the statement had been taken out of context. "It is another matter that humane Croatia would be capable of reacting and extending humanitarian aid to anybody," he said. Racan told the lower house he was confident Croatia and Hungary would sign a free trade agreement soon, during PM Viktor Orban's visit to Zagreb. Negotiations took long because each side advocated its own economic interests, he said. The lower house wrapped up today's work and resumes its ninth session tomorrow. Today, committees and benches have yet to debate next year's draft budget so that the lower house could discuss it tomorrow. (hina) ha

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