LOWER HOUSE ON DRAFT BUDGET FOR 1996 - DEBATE

ZAGREB, Jan 19 (Hina) - After Prime Minister Zlatko Matesa and Finance Minister Bozo Prka expounded the draft 1996 budget, representatives of Party Benches voiced their official opinions on the subject. Ivan Milas, speaking on behalf of the HDZ Bench, backed the budget proposal on the grounds that it would ensure sufficient funds for financing administration without printing money. "A firm kuna has been the greatest achievement of this government and its predecessors," he said. However, he added that budget revenue could have been higher. Unsufficient revenue was the main reason why the Liberal Party (HSLS) was unable to accept the draft budget, said Ivan Herak. He criticised the government for its "lack of economic strategy" and for reducinig the turnover tax instead of the income tax. Social Democrat Slavko Linic also taxed the Government with failure to elaborate an economic strategy. Besides, the budget did not include a welfare program which would secure funds for assisting the most destitute categories such as retirees and Homeland War invalids. Ivan Gabelica (Croatian Party of Rights) objected that the Government should have submitted a report on the country's economic situation before tabling the draft budget. "This budget does not provide for economic development and does nothing to suppress corruption. The Croatian Party of Rights cannot accept it," Gabelica said. Damir Kajin (Istrian Democratic Parliament) supported the idea that a peace-time budget would be possible only in 1997. Marinko Filipovic of the Croatian Peasants' Party said agriculture fared as badly in this budget as it had done in the previous years. After the official views of the Benches were heard, several members took the floor. Jadranka Kosor (HDZ) and Drago Krpina (HDZ) criticised inadequate funds earmarked for refugees and displaced persons. "The Government undertakes to return the frozen foreign exchange savings to depositors, yet it does nothing to guarantee at least a partial compensation for lost property to displaced persons. It is in a bad taste, to say the least," Krpina argued. Several members discussed the position of the agriculture. Vladimir Seks (HDZ) called for stronger protection against the import of agricultural produce. "Croatia has imported US$ 772 million of agricultural produce last year," he warned. "And this is supposed to be a policy of protecting domestic manufacturers?" he asked. He was seconded by Liberal Bolta Jalsovec who said that in the United States, the funds earmarked for agriculture were only slightly lower than those allocated to the defence. Veselin Pejnovic (Serb National Party) feared the budget would encourage a further mushrooming of state bureaucracy. According to Social Democrat Martin Jurjevic, the state should invest more in people, particularly scientists, and less in roads and facilities. The debate is to be resumed tomorrow. Seventy members have so far declared their intention to take the floor. The 1996 budget is expected to be adopted at the next session, on Jan 30. (hina) mm as 192056 MET jan 96