ZAGREB, Sep 17 (Hina) - The House of Counties of the Croatian National Sabor on Friday endorsed the Government's report on the execution of the state budget in the first half of this year. The report was sharply criticised by
opposition benches while the SDP party bench even considered that the report itself brings the Government responsibility into question. Assistant Finance Minister Branko Stulic warned MP's that the report does not portray a realistic picture due to the fact that a re-balance of the budget was adopted in June. According the report instead of the intended budget income of US$7.3billion (prior to the re-balance), in the first six months a total of US$3.3billion was realised which is an index of 45.02. Positive trends, Stulic said, were present immediately after the summer, i.e. the adoption of the re-balance. Stulic reminded that the rebalance significantly increased transfers to pension and healt
ZAGREB, Sep 17 (Hina) - The House of Counties of the Croatian
National Sabor on Friday endorsed the Government's report on the
execution of the state budget in the first half of this year.
The report was sharply criticised by opposition benches while the
SDP party bench even considered that the report itself brings the
Government responsibility into question.
Assistant Finance Minister Branko Stulic warned MP's that the
report does not portray a realistic picture due to the fact that a
re-balance of the budget was adopted in June. According the report
instead of the intended budget income of US$7.3billion (prior to
the re-balance), in the first six months a total of US$3.3billion
was realised which is an index of 45.02.
Positive trends, Stulic said, were present immediately after the
summer, i.e. the adoption of the re-balance. Stulic reminded that
the rebalance significantly increased transfers to pension and
health insurance funds.
The Pension fund this month recorded a lack of US$57.8million so the
Finance Ministry's priority is to direct resources in this
direction. Pensions should be paid earlier this month than they
have been in the past few months Stulic claimed.
He cautioned that the report referred to an extremely high level of
debt however, this should be covered by capital income that is,
income from the sale of shares in Croatian Telecommunications.
"This should already be received in October", he said. This income
should settle our debts of EUR350million for short term loans taken
with the Dresdner bank as well as a US$190million budget debt with
the Croatian National Bank.
The explanation however, did not satisfy opposition MP's for short
term loans item, Ankica Mamic of the Liberal Party said, had an
enormous index of 9.662 - just this year, this debt was an estimated
US$4.4million yet in the first half of the year it amounted to
US$416million.
A series of objections were relayed to the relatively small amount
of capital income realised, particularly since this was then
directed towards expenditure rather than production and
development.
The Croatian Peasant Party's bench noted its own accounts whereby
the funds to be received from the sale of Croatian
Telecommunications will not be paid at once but rather in three to
four years time.
The discussion then turned to the low budget income realised from
Value Added Tax which in the first half of the year amounted to
US$1.25billion.
(hina) sp