LOWER HOUSE DISCUSSES 1997 BUDGET EXECUTION

( Editorial: --> 2182 ) ZAGREB, June 18 (Hina) - The Croatian National Parliament's House of Representatives on Thursday discussed the Government's Report on Budget Execution in 1997. A majority of MPs said they would not adopt the report. They expressed dissatisfaction with the fact that the Government had redistributed budget items without asking Parliament for opinion and had been spending funds without specified purpose. The Report itself was described more favourably - opposition representatives believe that reports on the execution of the state budget are getting better every year but are still not sufficiently clear. Describing the Report as professional, realistic and clear, a Croatian Democratic Union (HDZ) MP supported it. Supporting the Report, Ivan Kolak of the HDZ spoke about the social effects of the budget, adding that in the past several years Croatia had reconstructed 78,000 houses and donated 380,000 flats from the budget. Only in 1997, 70 schools, 56 health clinics and hospitals and more than 35 institutions of higher education were built or reconstructed. Representatives of the Social-Democratic Party (SDP) believe that the 1997 budget had neglected the areas of social care, school system and culture. The Liberal Party (LS) and Croatian Social-Liberal Party (HSLS) representatives warned about the low privatisation revenue and state-owned company profit in 1997 (only US $22 million). The Istrian Democratic Assembly (IDS) agreed with this assessment and asked for the postponement and a thorough revision of the privatisation process. LS, HSLS and IDS representatives warned that the Report lacked important information such as the Defence Ministry expenditures. They stressed that the budget item on the programme of donation- based reconstruction in Bosnia-Herzegovina, amounting to US $7.6 million, was missing from the budget. Representatives of the Croatian Party of Rights (HSP) and Croatian Pure Party of Rights (HCSP) reiterated that the Government still lacked a strategy of economic revival as well as that too little was being invested in production, agriculture and road infrastructure. Opposition representatives reiterated that the budget share in GNP was too high as well as that the state was too expensive and the economy was being burdened with taxes. Deputy Finance Minister Mijo Jukic said that the last year's budget was socially- and development-oriented and that the state was carefully spending the money of its taxpayers. (hina) jn rml 181748 MET jun 98