HDZ PARTY BENCH CLAIMS BUDGET LEADING CROATIA TO SOCIAL INSECURITY

ZAGREB, Dec 6 (Hina) - The Opposition Croatian Democratic Union (HDZ) on Wednesday forwarded harsh criticism to the Government's draft budget during a discussion at the House of Representatives. The HDZ cannot accept the Government's draft budget for next year as it is neither developmental, nor social, and is leading Croatia into political and social insecurity, HDZ president Ivo Sanader said. The budget does not envisage funds for investments, and provisions for the reconstruction of homes and schools, as well as social rights, is decreased. The Government has conceded to pressures by the International Monetary Fund, although it has been shown that "Stand-by arrangements with the Fund have no connection with attracting foreign capital," Sanader said on behalf of his party. Finance Minister Mato Crkvenac refused the thesis the Government had changed the budget under IMF pressures. "The decrease in the budget is in the interest of Croatia, and our interest in this case was in unison with the Fund's suggestions," Crkvenac said. It is also incorrect that there is no use of stand-by arrangements, because a loan of US$250 million has already been agreed on with the World Bank, to be used for employment next year. He also refuted Sanader's assessment that the payment of debts presented no burden to the budget. "This year, besides the inherited internal debts, we had to pay off 9.2 billion kuna of foreign debts, and next year we will have to pay off 10.8 billion kuna," Crkvenac said, adding this was terrific pressure on the budget. The finance minister also dismissed the assessment that the draft budget was anti-entreprenneur, concluding the "budget leaves more funds for economy and business people than any one hitherto". (hina) lml jn