ZAGREB, Nov 24 (Hina) - The Croatian draft state budget for 1999 has +been balanced at 48.45 billion kuna (about US$7.7 billion), which +makes it 8.64 per cent higher than in 1998.+ The government determined the budget after a long
and difficult +discussion, since budget beneficiaries demanded 78 billion kuna +(US$12.4 billion), Deputy Finance Minister Mijo Jukic told the +Croatian Parliament's House of Counties on Tuesday.+ Presenting the draft budget, Jukic paid special attention to non- +budgetary funds. He said reforms in the pension and health systems +were the priority tasks in the forthcoming period.+ The central budget would "look good" if there were no increases in +funds intended for the pension fund, health insurance, employment, +and children allowances, the deputy minister said.+ By late 1998 transfers to the said funds increased by 30 per cent, he +explained, adding that in 1999, these expend
ZAGREB, Nov 24 (Hina) - The Croatian draft state budget for 1999 has
been balanced at 48.45 billion kuna (about US$7.7 billion), which
makes it 8.64 per cent higher than in 1998.
The government determined the budget after a long and difficult
discussion, since budget beneficiaries demanded 78 billion kuna
(US$12.4 billion), Deputy Finance Minister Mijo Jukic told the
Croatian Parliament's House of Counties on Tuesday.
Presenting the draft budget, Jukic paid special attention to non-
budgetary funds. He said reforms in the pension and health systems
were the priority tasks in the forthcoming period.
The central budget would "look good" if there were no increases in
funds intended for the pension fund, health insurance, employment,
and children allowances, the deputy minister said.
By late 1998 transfers to the said funds increased by 30 per cent, he
explained, adding that in 1999, these expenditures would grow by 19
per cent, while budgetary expenditures would rise by 3.3 percent.
Jukic said the entire consolidated revenue in 1999, including the
state budget and extrabudgetary funds, was planned at 71.7 billion
kuna (US$11.4 billion), which makes a 36.64 per cent share in the
gross national product.
Consolidated public expenditure accounts for 37.5 billion kuna
(US$5.97 billion) in the state budget, while 34 billion kuna
(US$5.4 billion) refer to non-budgetary funds.
The basic macroeconomic directives in 1999 include planned real
economic growth of five per cent, a three per cent inflation rate, a
stable exchange rate, and further cuts in the balance of current
accounts deficit.
For next year, Jukic also announced tax relief, to be achieved
through increase in the non-taxable part of income tax and through
progressive benefits for families with more children. In view of
this, a 5-13 per cent increase in salaries could be expected in
January.
The total tax revenue is expected at 42 billion kuna (US$6.6
billion), including 22 billion kuna (US$3.5 billion) from Value
Added Tax. The capital revenue from the privatisation of public
companies is expected at 4.1 billion kuna (US$650 million).
Budgetary expenditure will increase for the following ministries:
culture, with seven per cent, agriculture and forestry (28.6%),
transport, maritime affairs and communications (19.1%), education
and sports (21.5%), labour and social welfare (51.9%), health
(19%), science and technology (10.6%), and justice (12%).
Cuts will be effected in budget expenditures for the National
Security Office (7.2%), and the ministries of finance (9.1%),
defence (18.9%), reconstruction and development (10%), and the
interior (2.7%).
Current saving in 1999 is planned at 5.8 billion kuna (US$920
million), and will cover the financing of capital expenditures and
transfers, said Jukic.
With the 1999 draft budget, the government is proposing
macroeconomic stability, low-rate inflation, and the stability of
the entire system.
Jukic assessed the budget was balanced, socially responsible, and
ambitious, adding that with the efforts of all, it could be
executed.
(hina) ha jn/rml