BRIEF NEWS BULLETIN IN ENGLISH

BRIEF NEWS BULLETIN IN ENGLISH NO. 2730 HINA Zagreb, November 25, 1997 CRO UPPER HOUSE ENDORSES 1998 DRAFT BUDGET ZAGREB, Nov 25 (Hina) - The Croatian parliament's House of Counties on Tuesday endorsed Croatia's draft budget for 1998. The draft budget was explained by Deputy Finance Minister Mijo Jukic, who said it paid attention to the social component and a better and cheaper operation of the state. Government revenues for next year are expected to total 36.8 billion kunas, while expenditures about 38.8 billion kunas (USD 6.46 billion). The two billion kuna budget deficit, or 1.6 per cent of the estimated 1998 gross national product, would be covered by incurring debts at home and on the international market, said Jukic. The real budget increase for 1998 in relation to this year amounts to 8.5 percent. According to Jukic, the draft budget was based on an expected 7.5 per cent economic growth, a 3 to 3.5 per cent inflation rate, a stable currency and a further drop in interest rates.