UPPER HOUSE HEARS REPORT ON BUDGET IN FIRST HALF OF 1998

( Editorial: --> 3877 ) ZAGREB, Sept 29 (Hina) - The state budget revenue in the first half of this year amounts to about US$3.7 billion, which is 52.19 per cent of the estimated revenue. The total expenditure amounts to US$3.7 billion, Deputy Finance Minister Mijo Jukic said presenting a report on the execution of the state budget in the first half of 1998, at Tuesday's session of the Parliament's House of Counties. The state is satisfied with the revenue and expenditure, and the fact that the budget in the first half of this year is balanced, said Jukic. The increase of revenue from taxes, especially from the Value Added Tax, has also resulted in a budget revision. The budgetary revision, which was adopted in parliament in July, has increased funds for social welfare (pension and disability insurance, child allowance) as well as for agriculture, reconstruction and housing. A total of US$1.5 billion from VAT had been reaped in the first half of this year, Jukic said noting that the customs revenue has decreased. The favourable situation with the revenue has enabled the reduction of the internal debt. Of Croatia's public debt, which amounts to 27.2 per cent of its Gross National Product (GDP), the internal debt accounts for 10.8 per cent of the GNP. In general, the public debt is decreasing and the level of indebtedness in the past six months was low, while the US$700 million of the country's external debt is being serviced regularly, Jukic said. In the continuation of the session, the Upper House is to discuss another 15 bills, since 13 items have been added to today's agenda, including changes to the Law on the Rights and Duties of State Officials. The House of Counties' session, which started last week, will continue next week as well, when MPs are expected to discuss several items which were added to the agenda today. (hina) rml/sp 291350 MET sep 98