ZAGREB, June 17 (Hina) - Croatian Finance Minister Borislav Skegro on Thursday outlined a government motion for a revision of this year's budget at a session of the parliament's House of Representatives. For the first time, a revision
cuts the state budget by some US$13.8 million which will in 1999 total US$6.798 billion. There are four reasons for the revision and internal re-distribution, said Skegro, these being the negative effects of the Kosovo crisis, bankruptcy in five banks and the payoff of insured savings deposits, and the realisation that pension and health funds will not be able to perform their tasks. A sum of US$194.4 million will be directed to the pension fund, US$97.2 million to the health fund, whereas US$166.6 million will be earmarked to pay off savings to depositors in bankrupt banks. Salaries and other remuneration will not be touched, nor will duties to the public
ZAGREB, June 17 (Hina) - Croatian Finance Minister Borislav Skegro
on Thursday outlined a government motion for a revision of this
year's budget at a session of the parliament's House of
Representatives.
For the first time, a revision cuts the state budget by some US$13.8
million which will in 1999 total US$6.798 billion.
There are four reasons for the revision and internal re-
distribution, said Skegro, these being the negative effects of the
Kosovo crisis, bankruptcy in five banks and the payoff of insured
savings deposits, and the realisation that pension and health funds
will not be able to perform their tasks.
A sum of US$194.4 million will be directed to the pension fund,
US$97.2 million to the health fund, whereas US$166.6 million will
be earmarked to pay off savings to depositors in bankrupt banks.
Salaries and other remuneration will not be touched, nor will
duties to the public debt, both internal and external.
Skegro said current expenditure has been cut by ten percent and
capital expenditure by some 25.5 percent.
The entire tax revenue will, due to the Kosovo crisis, be US$347.2
million lower than in the previous budget.
Overall expenditure has been cut from US$10 billion to US$9.77
billion, which is 37.9 percent of the gross national product.
Skegro said US$4.97 billion is for the state, and US$4.8 billion for
extra-budgetary funds.
The motioned state budget revision has been endorsed by the
finances and state budget committee and the economy,
reconstruction, and development committee.
The education, science, and culture committee could not accept the
revision, pointing out there should be no cuts in earmarking for
education. The committee also objected to cuts in earmarking for
culture, especially for publishing, and suggested another
reading.
(hina) ha jn