State budget

PM: There are no problems with adoption of 2011 budget

12.11.2010 u 20:11

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Croatian Prime Minister Jadranka Kosor has dismissed speculation that problems have cropped up among partners in the ruling coalition government in drawing up the state budget for 2011, saying that the draft budget will be adopted at a government session next week and then sent to parliament for consideration.

Speaking to reporters on Friday after a ceremony in the eastern municipality of Erdut marking the 15th anniversary of the signing of the Erdut Agreement, Kosor said there were no disagreements in the ruling coalition regarding the 2011 budget and that its main characteristics had been agreed on.

"The budget has been agreed on within predetermined limits because the parliament adopted the government's decision that in 2011 expenditures should not be increased, so we will have to fit numerous obligations awaiting us into the restricted spending scheme," Kosor said, adding that some of the obligations referred to increased interest on loans, and funds needed to organise a referendum on Croatia's entry into the EU, parliamentary elections and a census.

The PM said she believed that the 2011 budget would be adopted in two weeks.

There are absolutely no disputable issues and yesterday's discussion among the coalition partners on the budget was held in the best atmosphere ever, with full understanding of the coalition partners for the situation we are in, as well as for what we want next year, because we envisage a growth of 1.5 percent, Kosor said, adding that GDP growth could be higher if some of the planned major investments were launched.

She said that she did not expect any problems with the adoption of the budget in parliament, adding that it would be supported by more MPs than required.