ZAGREB, June 19 (Hina) - Prime Minister Ivica Racan refuted in parliament on Tuesday claims about a disastrous budget deficit, asserting the budget was being filled according to plan, except for setbacks in revenue from privatisation.
Underachievement in capital revenue is no reason to revise the budget, Racan said, adding he was confident the majority of said revenue could be made by the end of the year. The real reason for a budget revision is higher expenditure for salaries, child's allowance, and pensions, which accounts for a 1.8 billion kuna (approx. $212 million) deficit in the consolidated budget, said Racan. This deficit will be compensated through higher revenue and borrowing unless the aforementioned rights are to be re-examined, he added. MPs inquired about the reason behind the recent appreciation of the national currency. Deputy PM Slavko Linic said business banks with surplus capital, which estimated they might
ZAGREB, June 19 (Hina) - Prime Minister Ivica Racan refuted in
parliament on Tuesday claims about a disastrous budget deficit,
asserting the budget was being filled according to plan, except for
setbacks in revenue from privatisation.
Underachievement in capital revenue is no reason to revise the
budget, Racan said, adding he was confident the majority of said
revenue could be made by the end of the year.
The real reason for a budget revision is higher expenditure for
salaries, child's allowance, and pensions, which accounts for a 1.8
billion kuna (approx. $212 million) deficit in the consolidated
budget, said Racan.
This deficit will be compensated through higher revenue and
borrowing unless the aforementioned rights are to be re-examined,
he added.
MPs inquired about the reason behind the recent appreciation of the
national currency. Deputy PM Slavko Linic said business banks with
surplus capital, which estimated they might make extra money
through their policy, were responsible.
The domestic currency exchange rate is within the jurisdiction of
the central bank, he said, adding the government was satisfied with
the measures the bank took to halt the growth of the kuna.
Independent MP Ivo Loncar inquired when the government would
rehabilitate "peasants". PM Racan said inducements for agriculture
were impressive considering the difficult economic situation.
Ivic Pasalic of the opposition's Croatian Democratic Union (HDZ)
asked if the prime minister thought a Western Balkan strategy was
still being applied towards Croatia with regard to access to NATO
and the European Union. Racan said Croatia had secured an
individual approach and that, as far as Croatia was concerned,
there was no alternative.
There were and still are people advocating one form of integration
or other, including advocates of the Western Balkans, Racan
conceded, but added that for Croatia it was much more important to
have secured an individual approach.
Croatia wants to normalise and have good relations with neighbours
but there is no danger it might consent to being pulled into some new
creation or integration in that field, the prime minister said.
Yes to regional cooperation but no to regional integration, he
stressed.
Jadranka Kosor of the HDZ asked how the government intended to
implement changes in labour legislation without dialogue with
unions. Racan confirmed the government was looking for more
flexible solutions regarding development and employment. These
solutions are still not definitive and will be tackled with unions.
He is deeply confident their strategic objective is development,
more jobs, and a safe existence from one's own income.
(hina) ha sb