UPPER HOUSE DEBATES REVISION OF STATE BUDGET

( Editorial: --> 3215 ) ZAGREB, June 23 (Hina) - The Croatian National Parliament's House of Counties resumed its session on Tuesday with a debate on the draft of a plan for amending the state budget. Opening the debate on revising the state budget, Deputy Finance Minister Mijo Jukic expressed satisfaction with the one billion dollar increase in budget revenues. He said this would enable greater investment in infrastructure, reconstruction of war affected areas, development of rural areas and agriculture, social welfare, science, medical care, arts, the boosting of public service salaries and improving the standard of living for all Croatian citizens. The increased revenues will enable the Government to reduce taxes by about US$119 million. Expenditures will grow by approximately US$670 million. At the same time foreign debt will be reduced by US$317 million. Jukic stressed that he expected that the budget would be balanced, considering that the forecast revenues now stood at $US6.8 billion, one billion higher that in the original budget, and this equalled expenditures. By the end of the year the Government expected a nominal economic growth rate of 12.4 per cent, or 7 per cent in real terms. During the same period the inflation rate is expected to stand at approximately 5 per cent, Jukic said. (Hina) mro jn /mbr 232257 MET jun 98