ZAGREB, May 13 (Hina) - Croatian Finance Minister Borislav Skegro on Thursday said the announced budgetary revision would result in a decrease in the overall budgetary revenue by some US$143 million, while additional budgetary
expenditure will amount to US$500 million. The expenditure includes the payment of insured savings in banks which have announced bankruptcy proceedings, and covering deficits in the pension and health insurance funds. This means that there is a deficit of US$643 million in the state budget. The Government plans to obtain US$143 million through the loans of the World Bank and some other institutions, and to obtain the remaining US$500 million it will have to decrease the existing budgetary spending, Skegro told reporters after today's Government session. According to Skegro, the Government will adopt the revised budget next week and then send it to the Croatian National Sabor. The r
ZAGREB, May 13 (Hina) - Croatian Finance Minister Borislav Skegro
on Thursday said the announced budgetary revision would result in a
decrease in the overall budgetary revenue by some US$143 million,
while additional budgetary expenditure will amount to US$500
million.
The expenditure includes the payment of insured savings in banks
which have announced bankruptcy proceedings, and covering deficits
in the pension and health insurance funds.
This means that there is a deficit of US$643 million in the state
budget. The Government plans to obtain US$143 million through the
loans of the World Bank and some other institutions, and to obtain
the remaining US$500 million it will have to decrease the existing
budgetary spending, Skegro told reporters after today's Government
session.
According to Skegro, the Government will adopt the revised budget
next week and then send it to the Croatian National Sabor.
The reduction of budgetary revenues was caused by the reduction of
the current (tax) revenue, amounting to about US$286 million.
At the same time, privatisation revenues will be increased by
US$143 million, which means that the decrease of budgetary revenues
will amount to US$143 million.
This version of the 'adjusted' budget is what the Government is
trying to reach agree on with the International Monetary Fund
(IMF), which is a precondition for a structural adjustment loan
from the World Bank, which should cover the largest portion of the
budgetary deficit of some US$143 million, which is about 0.7 per
cent of the Gross National Product, Skegro said.
Some projects will have to be postponed or reduced in comparison to
what had been planned in the 1999 budget, Skegro said, stressing the
revision would not affect the salaries of budgetary users.
The Government had no knowledge of the NATO action when it was
drafting the budget for this year. It had no knowledge of what would
happen with several problematic banks, for which the Croatian
National Bank in the end suggested bankruptcy proceedings, nor was
it acquainted with the problems in the pension and health funds.
The total budgetary amount stays the same, at US$7 billion.
But, instead of a balanced budget, there will be a budgetary deficit
of US$143 million, Skegro said.
The ministries of labour and health expect that part of the
announced revised budget will be set aside for pensions and health
funds.
Labour Minister Joso Skara said the current sources of income of the
Croatian Pension Insurance Fund were not sufficient for the payment
of pensions. "I believe we have reached an agreement on that issue,
which would also mean considerably shorter deadlines for the
payment of pensions", Skara said.
Health Minister Zeljko Reiner said the revised budget would have to
include funds for the debts of the Croatian health system.
"There won't be as nearly as enough funds for overcoming all debts,
but there will be enough for rescuing the health system from the
current difficult situation", Reiner said.
(hina) jn rml