ZAGREB, Nov 13 (Hina) - The Croatian government has proposed a +balanced state budget for 1999 in the amount of US$ 7.714 billion.+ Budgetary revenues are rising by 9.4 percent in relation to the +revenue estimated for this year, when
the balanced budget amount +slightly exceeded US$ seven billion.+ The state budget proposed for next year is a continuation of the tax +relief policy and is socially responsible. It is ambitious and, +with much effort, can be executed, Croatian Finance Minister +Borislav Skegro said on Friday.+ The government has ordered strict saving measures for all +expenditure which is not of utmost need, he told reporters shortly +after the 1999 budget proposal was forwarded to parliament.+ The most significant budgetary expenditure cuts will affect the +ministries of defence, finance, the interior, and partly the +Reconstruction and Development Ministry, albeit not in the +reconstruction itse
ZAGREB, Nov 13 (Hina) - The Croatian government has proposed a
balanced state budget for 1999 in the amount of US$ 7.714 billion.
Budgetary revenues are rising by 9.4 percent in relation to the
revenue estimated for this year, when the balanced budget amount
slightly exceeded US$ seven billion.
The state budget proposed for next year is a continuation of the tax
relief policy and is socially responsible. It is ambitious and,
with much effort, can be executed, Croatian Finance Minister
Borislav Skegro said on Friday.
The government has ordered strict saving measures for all
expenditure which is not of utmost need, he told reporters shortly
after the 1999 budget proposal was forwarded to parliament.
The most significant budgetary expenditure cuts will affect the
ministries of defence, finance, the interior, and partly the
Reconstruction and Development Ministry, albeit not in the
reconstruction itself.
The biggest rises in the budget, Skegro added, will affect the
ministries of education, culture, science, agriculture, health,
and labour and social welfare.
The Finance Minister explained the 1999 budget proposal starts from
estimates of a real gross national product (GNP) growth of five
percent in 1999, and from low inflation of three percent.
Tax revenue is expected to rise by 3.18 percent, with a total amount
expected at US$ 6.544 million which, Skegro said, will cut the
current GNP tax burden of 22.73 percent to 21.51 percent.
Value Added Tax remains the most significant budgetary revenue. It
will continue to rise by nine percent and is planned to reach US$
3.582 billion.
Skegro announced the rise of non-tax earnings by 16.5 percent, with
the highest rises to be registered in revenues from part of the
profit of public companies. From this year's US$ 74.8 million,
these revenues should reach US$ 143.3 million in 1999.
The government expects privatisation to account for the most
significant rise in capital revenues, with US$ 652.8 million
expected in 1999.
Skegro pointed out that borrowing and repayment will be balanced
with the planned amount of US$ 541.4 million.
He announced the details of the budget's items, with exact amounts,
would be presented next week.
The budget will also contain a detailed draft of the Defence
Ministry's budget, Skegro said, adding that transfers to the Croat-
Muslim Federation of Bosnia-Herzegovina will be presented
separately, within the Finance Ministry.
(hina) ha jn