UPPER HOUSE: PARTY BENCHES DISCUSS DRAFT BUDGET FOR 1999

ZAGREB, Nov 24 (Hina) - The Government's draft budget for 1999 was on Tuesday supported by the ruling Croatian Democratic Union (HDZ) and criticised by opposition parties at the Sabor's (parliament) House of Counties. The draft budget for next year is primarily a peace-time budget, a realistic budget aimed at the improvement of the social status of some categories of the population as well as at the completion of reconstruction and the creation of preconditions for economic growth, the HDZ party bench said. Budgetary expenditures are in the service of development, which can be seen in the increased subsidies for agriculture, education, science and culture. The Croatian Peasants' Party (HSS) bench, on the other hand, believes that the budget puts public finances in the function of the extremely high state expenditure. The Croatian Social-Liberal Party (HSLS) sees the draft budget as the continuation of the strategy applied so far with the state being the major entrepreneur, investor and spender and with 90 per cent of budgetary funds being distributed from the state level. The Social Democratic Party (SDP) bench also believes that the proposed budget continues the Government's economic policy applied so far, with a new element added to it - that of the election year. The SDP believes that the budget will lead to increased illiquidity and unemployment, and social problems. The Liberal Party (LS) estimates that Croatia's economy would be exposed to an unprecedented tax burden. The LS criticises cuts made in budgetary funds for the Interior Ministry, especially those intended for the preventive fire protection. Opposition party representatives were almost unanimous in the assessment that the envisaged incentives for agriculture were too weak, that the budget offered no way out of the difficult situation in the health system, and that funds intended for the Employment Bureau were also too small. (hina) jn rml ab