2012 budget

PM: Budget proposal encouragement to those who want to work

20.02.2012 u 12:56

Bionic
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Prime Minister Zoran Milanovic said on Monday he believed that the budget proposal for this year, to be discussed by the parliament during the day, would serve as an encouragement to those who want to work and create value.

"Regardless of how much we save and demonstrate a right policy towards international financial centres, only growth is both their and our guarantee, that's the only guarantee that we will be able to pay back loans accumulated over the years, that's the only guarantee of security," Milanovic said in parliament.

He stressed that without growth, new jobs and close to two million employed citizens, "we have nothing to talk about."

The PM said that his government was the first one to cut budget spending, but that it had retained its developmental function.

He expressed confidence that the budget proposal made it clear where saving made sense as well as where development results could be expected.

"I see Croatia in the middle between reason and the right choices - we neither want radical cuts nor a refusal to face the reality that we can no longer lead the country this way," Milanovic said.

The government believes its budget model will contribute to economic growth, consolidate public finances and help improve the country's position, "not towards international creditors but towards its own citizens."

Commenting on ongoing milk farmers' protests, Milanovic said the government did not underestimate them. "They may be politically motivated, that is not a crime, but they are not against the state."

He said that it was clear to him that producing food was difficult, but stressed that Croatia did not produce enough food, which was why it had to import it.

"We only have to blame ourselves for that. We have a system of grants which is relatively generous, but what are its results? It's not higher food production, but the same food production," the PM said.

The government is not against the farmers, but it wants a clear situation. "If we support something with billions of kuna, if we support a difficult and relatively uncertain business such as agriculture, then we have to tell all the others in Croatia what we are financing and what is the benefit," Milanovic said.

Parliament Speaker Boris Sprem expressed hope that the parliament would wrap up the debate on the budget proposal today, noting that amendments to the budget proposal and the budget proposal could not be put to the vote until after three days have passed from the day of the debate.

If the debate is completed until midnight today, amendments will be discussed on Tuesday, Wednesday and Thursday and on Friday the budget proposal will be put to the vote, said Sprem.