CROATIA'S UPPER HOUSE BACKS PROPOSED 1998 BUDGET

( Editorial: --> 8580 ) ZAGREB, Dec 15 (Hina) - The Croatian Parliament's House of Counties endorsed the proposed state budget for 1998 at an extraordinary session on Monday. House Speaker Katica Ivanisevic announced that President Franjo Tudjman would address both houses of Parliament on Thursday following the adoption of constitutional changes and on the occasion of the seventh anniversary of the promulgation of the Constitution. Deputy Finance Minister Mijo Jukic said that the budget draft reallocated 432 million kuna and reduced expenses for official travel, entertainment, purchase of furniture and cars, payment of intellectual services, etc. The budget reduced funds for the Ministry of Reconstruction and Development by 100 million kuna. It was proposed that 200 million kuna be raised through the sale of shares. The Defence Ministry's expenditure was reduced by 150 million kuna due to the reorganisation of the armed forces. The vote on the proposed budget was not attended by some opposition deputies, who had walked out of the session after Ivanisevic warned a Peasant Party deputy that he was presenting demands for too long. The opposition deputies believed this denied MP Zeljko Pecek the floor, and as a result they left the chamber. (hina) vm mm 152029 MET dec 97