GOVERNMENT ADOPTS DRAFT BUDGET FOR 1998 ( Editorial: --> 0927 )

( Editorial: --> 0927 ) ZAGREB, 14 Nov (Hina) - At a session held on Friday, the Croatian Government adopted a draft budget for 1998 proposing the overall revenue of 36.8 billion kuna (US $6.13 billion), and the overall expenditure of 38.8 billion kuna (US $6.46 billion), the Government communications office said in a statement. The Government has proposed a budget deficit of two billion kuna (some US $333.3 million). As the gross national product in 1998 is nominally estimated at 125.5 billion kuna (US $20.9 billion), the budget deficit amounts to 1.6% of the GNP. The budget current revenue is by 2.9 billion kuna (483.3 million dlrs) higher than current expenditure, which means that the state will realise savings (current surplus) amounting to 2.3% of the GNP. That current surplus allows capital expenditure (investments) amounting to 5.3 billion kuna (883.3 million dlrs), which is 17% more than in 1997. Tax reduction in 1998 is expected to amount to 1.7 billion kuna (283.3 million dlrs), which decreases the share of all taxes from 27.32% of the GNP in 1997 to 25.96% in 1998. The Government has also adopted and sent into parliamentary procedure plans on revenue and expenditure of extrabudgetary funds. The overall consolidated deficit in the budget and in extrabudgetary funds in 1998 amounts to 2.2 billion kuna (366.6 million dlrs or 1.79% of the GNP), which is 800 million kuna less than this year's budgetary deficit, which amounts to 2.67% of the GNP, the statement said. (hina) jn rm . 141841 MET nov 97