The draft act is part of efforts Croatia is making to adjust this sector with the European Union's standards.
The act, to be discussed under urgent parliamentary procedure, does not cover agriculture and fisheries.
Under the draft, every legal proposal containing propositions about state support must be discussed and approved by the Croatian Competition Agency before it could be adopted.
The agency would also be bound to give its opinion on any concrete proposal for subsidies which would be sent to the government, ministries or other state bodies for approval.
Prime Minister Ivo Sanader said that state subsidies should primarily have an economic role adding that the purpose of the new law would be to ensure a more efficient manner for allowing state grants.
Minister Suker said that Croatia would continue taking care about strategic branches such as shipbuilding and agriculture and timber and wood-processing industry.
According to Suker, in the 2001-2004 period Croatia granted 32.3 billion kuna as sate subsidies.
Subsidies account for 2.94 percent of Croatia's Gross Domestic Product while in the EU this share is 1.38 percent.
The Sanader cabinet today relieved of duty Assistant Foreign Minister Tomislav Vidosevic who was appointed Croatia's ambassador in Italy.
(1 EUR = 7.4 kuna)