Sime Prtenjaca of the ruling Croatian Democratic Union (HDZ) said the draft budget showed that the government was capable of accomplishing economic, social and development goals that many had considered impossible and unrealistic until now, that it had increased economic growth and industrial production and reduced unemployment.
He commended the growth rate in tourism of almost 14 percent in the first five months of this year, more efficient collection of tax revenue, social stability and the stability of economic developments. As for the growth of the foreign debt, Prtenjaca said that citizens' bank deposits were on the rise as well.
Finance Minister Ivan Suker said that the increased revenue was the result of a 7% economic growth in the first three months, which he said the incumbent government, unlike the previous one, had accomplished while simultaneously reducing the deficit.
The most important thing with regard to economic growth is that it was accomplished with the 70% participation of the private sector, while economic growth during the term of the previous government was generated by consumption in the public sector, Suker said.
The Social Liberal Party (HSLS) supported the revised budget, with deputy Zlatko Kramaric saying that the increased budgetary revenue should be spent on development, particularly on the even development of all regions.
Jozo Rados of the People's Party (HNS) said the revised budget was only a salvage plan and a plan of consumption rather than of development since most of the increased budgetary allocations were intended for the payment of debts in the health sector, salaries in public services and financial obligations arising from collective work agreements.
On the other hand, there is less and less money for the Reconstruction and Development Bank and the Development and Employment Fund, or for boosting exports and curbing imports, Rados said.
As for the government's claims about the reduced unemployment, Rados said that data on some 30,000 persons who found employment during the term of the incumbent government were devalued by data on more than 20,000 new pensioners.
Rados was unable to understand the purpose of increased funds for the Ecological and Fisheries Protection Zone (ZERP), saying that the state and competent services were not trained to start applying ZERP, that the fishing fleet had not been renewed, and that neither diplomatic nor organisational preparations had been carried out for ZERP to become effective on January 1, 2008.
Mato Arlovic of the Social Democratic Party (SDP) said that the achieved economic growth still lagged behind the growth rates of other transition countries, the average salary was three times lower than the growth of budgetary revenue, and that the growth of revenue was a result of increased taxes, while salaries and pensions were falling.
Arlovic also warned about the continued growth of import and decrease of export, noting that the public debt was growing faster than the economy, that the number of insolvent companies and unpaid obligations was on the rise, and that higher allocations for the health sector were only intended to alleviate the situation in that sector rather than result in its general improvement.
Zeljko Pecek of the Peasant Party (HSS) wanted to know what had happened with announcements that pension allowances of workers retired before and after 1990 would be harmonised, why the revised budget did not envisage privileges for business people, and why the coverage of exports with imports was lower every year.
Damir Kajin of the Istrian Democratic Party (IDS) said Minister Suker had reason to "gloat" over the budget that was growing by the year, but he wondered how long this would last and warned about the foreign debt, which has reached EUR 32 billion.
Kajin welcomed the increase in tax revenue, but noted that it benefitted only the rich and urged a reduction of the VAT rate to 20% or 18%, or the introduction of graduated tax rates.