Finance minister says national budget to be balanced

Finance Minister Ivan Suker said on Thursday the national budget could be balanced only via rational state spending aimed at eliminating the risk of macroeconomic instability.

"I wouldn't say that the (draft) budget is development- and socially-oriented. However, it is one that we can all bear, you as taxpayers and we who are responsible for its execution," Suker said at an annual conference of economists in the northern Adriatic resort town of Opatija.
The draft budget projects economic growth at 2-2.5%, which is realistic and reflects a conservative approach to budget planning, said the minister.
Asked about the size of next year's budget, he said it was still unknown, as it would depend on health reform costs and social partners.
Suker expects personal spending to rise in 2009, in spite of everything, investments too, and exports to grow about three percent, regardless of everything.
The minister said he was looking forward to inflation dropping to below four per cent next year, and that it was evident, now that fuel prices had dropped, that many had raised product prices without justification and that they were expected to go down now.
We have managed to maintain macroeconomic stability and a restrictive fiscal policy, and with this restrictive policy and balancing of the national budget we are leaving more room to citizens and companies, and less to those who tried to fish in troubled waters, said Suker.
He stressed that Croatian banks should also be asked to behave rationally, and that they did not have to raise interest rates through the roof.

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