CROATIAN LOWER HOUSE SUPPORTS DRAFT BUDGET FOR 1998

( Editorial: --> 4494 ) ZAGREB, Nov 28 (Hina) - The Croatian Parliament's House of representatives on Friday supported the draft government budget for 1998 with 67 votes for and 18 against. The government will be sent suggestions and comments, voiced at the session, for the preparation of the final draft budget. Most MPs also voted for the Bill on the application of the draft budget. The draft budget for 1998 plans revenues of 36.8 billion kuna (US$6 billion), while budgetary expenses are planned to reach 38.8 billion kuna (US$ 6.36 billion), which is 8.5 per cent more in relation to the year 1997. The 2.01 billion kuna (US$330 million) budgetary deficit will be covered through loans at home and abroad. The basic macroeconomic preconditions for drafting next year's budget were seven to 7.5 per cent economic growth in real value, and maintaining inflation from three to 3.5 per cent. One characteristic of the draft budget is tax relief which will also be achieved through the introduction of the Value Added Tax (VAT). With this change in the tax system, the economy is expected to be left with 1.7 billion kuna (US$ 278 million) more than this year. (hina) lm jn 281810 MET nov 97