HOUSE OF COUNTIES STARTS DISCUSSION ON STATE BUDGET

ZAGREB, Dec 7 (Hina) - The Croatian parliament's House of Counties on Thursday morning continued its 50th session by a discussion on a draft state budget for 2001, amounting 49.67 billion kuna. The draft state budget includes numerous restrictions, however, this is in Croatia's interest, Finance Minister Mato Crkvenac said. The basic goal is to reduce the government spending in order to relieve the economy and enable an accelerated development and growth of the number of employed persons. Therefore, the budget for 2001 is nominally smaller than this year's budget, Crkvenac said. It has a social component but we cannot reduce the expenditure and at the same time pay debts to pensioners, unless we reduce some social rights, the Minister said. Citizens in the most difficult social situation will keep their rights, Crkvenac said, adding other privileges, such as the right on school supply for the children from wealthier families, would be reduced. On the other hand, the budget represents a development because it encourages export, shipbuilding industry, tourism and small and medium entrepreneurship. The budget for 2001 is restrictive and stretched, however, it is in Croatia's interest in long term, Crkvenac concluded. The House of Counties Continued the discussion on the draft budget. 8hina) it