ZAGREB, June 15 (Hina) - Members of the Croatian National Sabor's House of Counties on Tuesday debated the Government's draft budget revision for 1999, describing it as unrealistic, not being oriented towards economic development and
the reduction of public spending. Dissatisfied with macroeconomic conditions, some Opposition representatives said the Government was responsible for the current situation. The Committee for Economy and Finances was very critical towards the draft budget revision, to be discussed in two readings. Although it okayed the draft, the Committee said it was not realistic nor was it oriented towards economic development.Should the Government propose another budget revision this year, it should resign, the Committee believes. The Upper House voiced almost unanimous support for suggestions by the Committee for Economy and Finances regarding the reduction of salaries of state officials and emp
ZAGREB, June 15 (Hina) - Members of the Croatian National Sabor's
House of Counties on Tuesday debated the Government's draft budget
revision for 1999, describing it as unrealistic, not being oriented
towards economic development and the reduction of public
spending.
Dissatisfied with macroeconomic conditions, some Opposition
representatives said the Government was responsible for the
current situation.
The Committee for Economy and Finances was very critical towards
the draft budget revision, to be discussed in two readings.
Although it okayed the draft, the Committee said it was not
realistic nor was it oriented towards economic development.
Should the Government propose another budget revision this year, it
should resign, the Committee believes.
The Upper House voiced almost unanimous support for suggestions by
the Committee for Economy and Finances regarding the reduction of
salaries of state officials and employees in public companies, and
the discontinuation of all non-productive investments.
The draft does not take into account the real economic situation and
our environment, said Zlatko Komadina of the Social Democratic
Party (SDP).
The Liberal Party (LS) believes the draft budget revision will not
change the serious economic situation. What has to be changed is the
economic policy, LS representatives said.
The Croatian Social-Liberal Party (HSLS) believes that the concept
which is being used as the starting point is wrong and that a change
has to be made immediately.
Although he believed there was little chance that his proposals
might be adopted, HSLS's Vilim Herman suggested a 15 per cent
decrease of the VAT rate, the allocation of Telekom, Croatian Oil
Industry (INA) and Croatian Power Supply (HEP) shares to the
pension and health finds, the introduction of legal regulations to
facilitate the arrival of foreign banks and institutions, the
reduction of the number of employees in administration and state
administration, tax reduction for entrepreneurs for each new
employee etc.
The Croatian Party of Rights/Christian Democrats of Medjimuje
(HSP/KDM) believe that the reduction of public spending to the
detriment of Homeland War soldiers, invalids and reconstruction
must not be allowed.
The budget revision was supported by the Croatian Democratic Union
(HDZ). With all its flaws, the draft is acceptable because one of
HDZ's strategic aims is for all pensioners to receive pensions,
said Vlado Osust. Osust stressed the need for the payment of insured
savings to depositors in banks which are undergoing bankruptcy
procedures and suggested that there be no reduction of funds for
displaced people and refugees.
(hina) jn rml