CROATIAN GOVERNMENT ADOPTS DRAFT 1996 BUDGET

ZAGREB, Jan 4 (Hina) - The Croatian government on Thursday adopted a draft 1996 budget and proposed that the President of the Republic not confirm the election of an opposition candidate as mayor of Zagreb. The draft budget would be considered by parliament at a session scheduled for January 15, the government's public relations office said in a statement. The draft focused on economic growth and reconstruction of much of the war-ravaged infrastructure. It was set at 31 billion kuna (about DM 8.3 billion), and a deficit of nearly 2 billion kuna (about DM 540 million) would be financed by domestic debts and foreign loans. The government presented draft amendments to the Turnover Tax Law according to which the turnover tax would be reduced from 20 to 15 percent, retaining a tax rate of 10 percent, the statement said, adding that taxes for most products would be cut from 32 to 26.5 percent. The government also proposed several amendements to criminal legislation. Dubravko Jelacic Buzimski was relieved of duty as assistant culture minister at his insistence and was replaced by music critic Jagoda Martincevic. Slavko Begic, currently an adviser on economic affairs at the Consulate General in Munich, was named assistant economy minister. Mladen Matvijev was reappointed as acting director of the National Weather Service. The government recommended President Franjo Tudjman to confirm the election of Vlado Osust as prefect of Vukovar County. At the same time the government reached a unanimous decision to recommend the President not to confirm the election of Goran Granic as mayor of Zagreb and prefect of Zagreb County, the statement concluded. (hina) vm mm 041512 MET jan 96