ZAGREB, Dec 19 (Hina) - The House of Representatives today reviewed the draft 1997 budget in the second reading.
ZAGREB, Dec 19 (Hina) - The House of Representatives today reviewed
the draft 1997 budget in the second reading. #L#
"The draft budget has been amended since the first reading by
adding 300 million kuna (US$ 54.5 million) to the initial sum,"
Finance Minister Bozo Prka said, presenting the amended draft.
The total revenue was budgeted at 32.955 billion kuna (US$
5.99 billion) and expenditure at 35.792 billion kuna (US$ 6.5
billion), Prka said.
The deficit remained 2.8 billion kuna (US$b 509 million) and
financing would not present a problem provided a "reasonable budget
policy" was pursued.
The proposed budget was a realistic one and would both
facilitate the country's further transition to a market-oriented
economy and ensure a balance between social and development needs,
Prka said.
Prka went on to outline the changes introduced since the first
reading on both the revenue and the expenditure sides.
"Funds earmarked for the purchase of cars have been reduced by
50%, while entertainment funds have been cut by 10% for all budget
users," Prka explained.
The cuts introduced since the first reading also include: a 10
million kuna (US$ 1.8 million) reduction to the National Security
Office; a 50-percent cut in transfer payments to various
associations, which will save the budget 43 million kuna (US$ 7.8
million); a 63 million kuna (US$ 11.4 million) reduction in public
welfare funds; and a 247 million kuna (US$ 44.9 million) reduction
in the current budget reserve.
On the other hand, certain expenditure items have increased,
such as the funds allotted to ethnic and national communities or
minorities, by a million kuna (US$ 182 thousand), and the financing
of drug crackdown programs, also by a million kuna. The funds
allotted to the Government Office for the establishment of Croatian
authority in the Danubian area have been increased by 30 million
kuna (US$5.54 million).
Funds allotted to the Zadar-Knin County, Knin town, and a
Croatian Bank for Reconstruction and Development program for
stimulating the employment of demobbed soldiers have also been
increased, the latter by 230 million kuna (US$ 41.8 million).
The amended draft also set aside 25 million kuna (US$ 4.54 for
the reconstruction of Kasteli Bay, which is to be carried out as a
joint venture with foreign investors.
On the revenue side, tolls are expected to yield an additional
200 million kuna (US$ 36.36 million), while 100 million kuna (US$
18.18 million) are to be realised from the sale of state assets.
The funds allocated to certain ministries have been
restructured, so as to increase the sum earmarked for family and
disability pensions (defence ministry) and teachers' and
scientists' salaries (ministries of education and science).
(hina) jn as
191336 MET dec 96