ZAGREB, Jan 5 (Hina) - The state budget for 1996 would be oriented towards economic growth and reconstruction of a great part of infrastructure, destroyed in the war. Budget income and support were projected to be at a level just
above 31 billion kunas, and budget expenditures with net loans would be just above 33 billion kunas. Details concerning the State Budget Bill for 1996, which the Government session of January 3 has sent to the Parliament to discuss it, were tackled at today's Government session by Premier Zlatko Matesa, Vice Premier Borislav Skegro and Finance Minister Bozo Prka.
ZAGREB, Jan 5 (Hina) - The state budget for 1996 would be oriented
towards economic growth and reconstruction of a great part of
infrastructure, destroyed in the war. Budget income and support
were projected to be at a level just above 31 billion kunas, and
budget expenditures with net loans would be just above 33 billion
kunas. Details concerning the State Budget Bill for 1996, which the
Government session of January 3 has sent to the Parliament to
discuss it, were tackled at today's Government session by Premier
Zlatko Matesa, Vice Premier Borislav Skegro and Finance Minister
Bozo Prka. #L#
The state budget for 1996 reflected the reality of the 'post-
Dayton' Croatia, in which basic guidelines were reconstruction and
development, Premier Matesa said, adding that capital spending was
going up from four to seven billion kunas, with reconstruction
expenditures recording a double rise. Reconstruction spending would
amount to 1,6 billion kunas, which was 162% more than in the last
year. It was planned that 1,2 billion kunas would go for road
construction, which was 89% more than the last year, and money
transfers for science, culture and agriculture were recording a
considerable rise. That meant that Croatia was oriented more
towards investment that towards spending, Matesa said.
The state budget for 1996 was the first real peace-time
budget, and its main characteristics were the stability of economy,
with low inflation rates and real expectation of higher growth
rates, Vice Premier Borislav Skegro said, stressing the current
situation pointed to a 10% nominal rise, that is, to an 8% rise in
real value of the gross national product.
With tax reduction and guaranteed stability one could expect
that the annual inflation rate would be zero, Skegro said, adding
Croatia's expectations of high economic growth were already being
realized with the opening of the Adriatic oil-pipeline, revival of
railway and making of new export deals.
One should expect that kuna would only grow stronger, and that
would be caused by an influx of foreign private capital, which was
not projected in the budget.
Finance Minister Bozo Prka held that foreign financial
institutions would give unreserved support to Croatia if the 1996
State Budget Bill should be adopted. Total capital expenditures
were recording a rise in nominal value of 62,46%, Prka said, adding
this should have a positive effect on the development of economic
activities.
As regards the current expenditures, the greatest decrease was
registered in the category of military spending which decreased
from last year's 10,1 billion kunas to this year's 8,7 billion
kunas (a 15% decrease).
Budget deficit would amount to almost two billion kunas, which
made 2% of the gross national product and it would be financed with
foreign loans of the World Bank (1,5 billion kunas), the European
Bank for Reconstruction and Development (130 billion kunas), an
issue of Euro-bonds (1,2 billion kunas) and other loans decreased
by public debt redemption.
The basic goal of the proposed state budget was the reduction
of burdens of the Croatian economy so that along with the 1996
State Budget Bill the Government had also sent to the Parliament a
Bill on Amendments to the Law on Trade and Services Turnover Tax
which, Premier Matesa said, would be the first among many laws
intended to reduce tax pressure.
(hina) mm rm
051709 MET jan 96