CROATIAN UPPER HOUSE DISCUSSES BUDGET REVISION

ZAGREB, June 15 (Hina) - Croatian Deputy Finance Minister Mijo Jukic on Tuesday presented budget revision to representatives of the Croatian National Sabor's House of Counties. According to Jukic, one of the reasons for the budget revision in 1999 is payments of insured savings deposits in four banks which bankrupted, and for which the budget revision will earmark US$166 million. Another reason is a US$208 million increase in means to be allocated to the pension fund and a US$100 million increase in means for the health fund. Current expenditures will be reduced by 10 percent, not including expenditure for employees, whereas capital expenditures will be reduced by 25 percent for all budget users, Jukic said. The Deputy Finance Minister pointed to macroeconomic indicators which conditioned the revision, adding the economy was not expected to grow. He stressed, however, that a five per cent growth rate had been expected at the time the budget had been drawn up. The Government will not and cannot give up the stable kuna, Jukic said. "We won't allow inflation or an increase in prices which would have a negative effect", Jukic added. According to the revision, the tax revenue will be reduced by US$347 million, while the privatisation revenue will be increased by US$139 million, so that the total revenue will amount to US$208 million less than the amount determined by the budget. The state is planning to borrow another US$194.4 million, so that the total expenditure would be US$13.8 million smaller and amount to US$6.79 billion. (hina) it jn/rml