ZAGREB, 28 Nov (Hina) - After four years, Croatia is entering a period of economic recovery and the gross national product (GNP) is expected to register a 9-10% rise, along with a maintained low inflation rate (3,5%), Finance Minister
Bozo Prka stated Thursday, explaining a draft state budget for 1997 at today's session of the House of Representatives.
ZAGREB, 28 Nov (Hina) - After four years, Croatia is entering a
period of economic recovery and the gross national product (GNP) is
expected to register a 9-10% rise, along with a maintained low
inflation rate (3,5%), Finance Minister Bozo Prka stated Thursday,
explaining a draft state budget for 1997 at today's session of the
House of Representatives. #L#
According to the draft state budget, income is expected to
amount to 32,7 billion kunas, while expenditure has been estimated
to 35,5 billion kunas. A 2,8-billion-kuna deficit makes 2,6 % of
the GNP, which has been estimated to 108 billion kunas, Prka said,
adding that the deficit would not jeopardize the functioning and
stability of the state, since it is below the acceptable level of
3%. The deficit would be financed through loans in domestic and
foreign capital markets.
Investments would amount to 4,2 billion kunas, Prka stressed.
He estimated that 'there is still enough space for reconstruction
loans', adding that Croatia's total external debt amounted to 4,5
billion dollars, which made one fourth of the gross national
product (according to European Union criteria, a country's external
debt can amount to up to 60% of its GNP).
Prka announced a minimal rise in salaries of state budget
users, amounting to 10%, and a real rise in pension allowances.
Two billion kunas would be set aside for Homeland war invalids
while 957 million kunas would be earmarked for the Croatian
Railways. Prka went on to speak about today's strike of railway
workers, adding that the railways represented Croatia's most
difficult structural problem.
'There is no reason for this strike, since the salaries of railway
workers have risen by 22% in 1996', Prka said, stressing that
railway workers could expect a rise in salaries through changes of
income tax.
Out of capital expenditures, which amounted to 4,2 billion
kunas, 1,2 billion kunas had been earmarked for the reconstruction
of the country, Prka said.
'Croatia will have to start selling parts of its public sector
in order to be able to carry out the reconstruction of the Croatian
Danubian area and other war-destroyed areas, but to the extent
which would not jeopardize its vital interests', Prka said.
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