LOWER HOUSE DISCUSSES FINANCING OF LOCAL GOVERNMENT UNITS

( Editorial: --> 8048 ) ZAGREB, Jan 29 (Hina) - The Croatian National Parliament's House of Representatives Thursday continued its session with a discussion on three bills on changes to the Law on the Financing of Units of Local Self-Government and Government. One bill was put forward by two representatives of the Croatian Democratic Union (HDZ), the second one by representatives of the Istrian Democratic Party, and the third by a representatives of the Italian minority. The bills propose the redistribution of shares units of local self- government and government have in some tax receipts. Representatives of the HDZ propose redistribution between counties on the one and towns and municipalities on the other hand, by increasing the counties' revenues. The representatives said 69 per cent of the taxes in question goes to the state budget, 25.3 per cent to town and municipality budgets, and only 6.7 per cent to county budgets. The other two bills propose the increase of county budgets by decreasing the state budget's share in revenues from those taxes, with town and municipality revenues staying the same. Such redistribution would cut the state budget for DM 116 million, or 1.02 per cent of budgetary revenues which, the representatives who put forward the bills believe, would not bring the state budget's balance into question. During today's discussion, the parliament's representatives supported some sections of all three bills, while criticising other sections. The majority agreed the financing of local self- government and government is an important and complex issue which cannot be resolved by changing the current law. They believed the Government should undertake a complete analysis of the functioning and financing of local self-government and government units and propose an integral solution. (hina) ha jn 291428 MET jan 98