LOWER HOUSE BEGINS DISCUSSION ON DRAFT BUDGET FOR 1999

ZAGREB, Dec 17 (Hina) - The Croatian National Sabor's House of Representatives continued its extraordinary session Thursday with a discussion on the draft state budget for 1999 which is in its second reading. The Government proposed a state budget of US$7.7 billion, instead of the 48.45 billion kuna (US$7.8 billion) from the first reading, said Deputy Finance Minister Mijo Jukic. The Government will motion amendments to the draft budget. The first amendment relates to the signing of collective agreements with unions of public services which is scheduled for Friday. The second amendment pertains to salary increases in the judiciary. The Government insists on a balanced budget, a budget which will be social and developmental, Jukic stressed. The draft budget was drawn up upon estimates of a real increase rate of five per cent in the next year, a three per cent inflation, stable currency, a further decrease in currency account balance deficit from 7.5 per cent in this year to about five per cent of GDP next year. Parliamentary committees endorsed the draft budget, but also request larger resources for the construction of roads, salaries for officials in the judiciary, mine-clearing and other projects. (hina) lml jn