PRESIDENT TUDJMAN VISITS FINANCE MINISTRY

( Editorial: --> 6951 ) ZAGREB, Jan 24 (Hina) - Croatian President Franjo Tudjman Saturday visited the Croatian Ministry for Finance and addressed top officials and representatives of all Ministry departments. President Tudjman symbolically set to work the Ministry's information system which, in one united net, includes all tax and customs branch offices, as well as the customs administration Internet home page. What the defence ministry was in the war, the finance ministry is in peace time, said the President, pointing out their task in peace time, as an instrument of state policy, was of first rate importance. Let us protect what we have achieved, a free and independent Croatia, said Tudjman. In doing so, the work of the finance ministry is of extreme importance, he pointed out, in planning and executing the state budget, not just by collecting tax and tariffs, but also by representing our independent, people's an social state. The people's state, Tudjman explained, because it must be a state of all social classes of Croatian citizens, and a social state, he added, because it must take care for both the most endangered and the poorest social classes. At the same time, the President said, we must be aware that the world has not invented anything better than the free market. Croatia has accepted the free market in order to develop, he added. The main issue in doing so is the necessity of creating equal circumstances for every man to be able to achieve as much as he can, according to his knowledge and capabilities, said Tudjman. Croatia's development will depend on such people who are capable of achieving wealth, manage companies and offer the highest possible salaries to its workers. "On the one hand we must aim to be a state which cares for all its classes, but on the other, we must not fetter, but stimulate private entrepreneurship and initiative", said the Croatian President. Through its application of legal provisions and laws, the finance ministry must incite the return of Croatian emigrants, he stressed, adding this was of great importance for Croatia's future. Judging by its territory, Croatia could have and feed five times as many inhabitants, Tudjman pointed out. Croatian Finance Minister Borislav Skegro thanked Tudjman for his address on behalf of 7,161 officials and employees of the finance ministry, of whom 120 were in attendance today. Skegro said Croatia's new tax and customs system incited saving, investing, growth of export and production, and new jobs. Speaking about results, Skegro presented data on real government revenues in relation to the kuna's current buying power. The data show the revenues have grown from DM5.3 billion in 1993 to DM9.7 billion in 1997. The real revenue has doubled in the last five years, said Skegro, pointing out this happened each year with lower tax rates and a lower tax share in the gross national product. This growth of revenues facilitated a better execution of state functions, including social welfare, salaries, pensions, the defence and the reconstruction, said the finance minister, adding all this had been done without printing money and causing inflation or increasing the foreign debt. The principal tasks in the near future, said Skegro, are the completion of a State Treasury system for efficient spending of state money and administration of cash, the national debt and state property, modernisation of the customs law and the adoption of a general tax code. On behalf of the Ministry for Finance, Skegro presented President Tudjman with the 1998 Budget Book and the State Treasury logotype. Also present at today's conference were Premier Zlatko Matesa, Tudjman's chief of staff Hrvoje Sarinic, Tudjman's chief advisor for economy Pero Jurkovic and his advisor for economy Lidija Zoric. (hina) ha jn 241723 MET jan 98