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Finmin says salaries and pensions won't be cut for sake of living standards

Autor: mses
ZAGREB, Aug 26 (Hina) - Presenting the government's motion to revise the 2010 budget in the parliament, Finance Minister Ivan Suker said on Thursday that the ruling coalition opted for keeping intact salaries, pensions and other budget benefits for the sake of living standards, adding that the revised budget was in accordance with what economic analysts and the Opposition had been lately suggesting.

Speaking of increasing the budget deficit to 4.2 percent of Gross Domestic Product, the Croatian minister said that a majority of European Union countries had undertaken similar measures and that, for instance, Great Britain had a deficit of 12 percent, Ireland 10.7 percent and Germany 5 percent.

In response to MPs' criticism about the budget's spending side, which would rise by HRK 898.2 million to HRK 122.3 billion, Suker called on deputies to give concrete proposals about where cuts could be made.

"Why all these heated debates, if we have already agreed that pensions and salaries should remained intact?" Suker asked.

He went on to say that it was the budget revenue side where something could be done.

In this context, he called on the Opposition for discussions on possibilities to strengthen the economy rather than stirring up "numerous protests" which halt investments and economic growth.

Suker said that the increasing deficit was generated by the economic downturn as well as by the participation of the Opposition in protest actions.

The minister said the current growth model, based on funds ensured from the state budget, was "an obsolete economic model" given that state-owned companies were overindebted and could hardly make more investments.

(Hina) ms

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