Naslov
Government finances in 2000: on the way to the end of the tunnel or just round the roundabout?

Autori
Bubaš, Zoran

Izvornik
Newsletter : an occasional publication of the Institute of Public Finance (1333-4417) 2 (2000), 5; 1-5

Vrsta, podvrsta i kategorija rada
Radovi u časopisima, popularan rad, ostalo

Ključne riječi
budget ; Croatia
(Budget ; Croatia)

Sažetak
The inevitable conclusion arises: although expenditure for pay and contributions will explain about a third of the total expenditure of the national Budget, solutions for the problems of public expenditure have to be sought in reforms of the system of retirement and health insurance. Rationalisation in the civil service, and the nominal pay ceiling can, for example, have a relatively rapid effect, reducing the share of government salaries in overall budgetary expenditure. The same goes for the companies in which the state has majority holdings and in which, after privatisation, the new owners and the market will determine who will be paid, and how much. Apart from that, deferment of the radical reforms of the system of retirement and health insurance is nothing but a policy of waiting until the water level arises to the level of the taxpayer's ears. The question also arises of the policy of the public debt, and the management of the public debt from which this policy has to derive: the essential difference between private and public borrowing is that the advantages or damage that may arise as a result of public sector borrowing affect all citizens, even those, what is more, who have not yet been born. There is not much space in Croatia to wait for better times to make and put into practice the necessary decisions, because the future is tightly linked, in terms of cause and effect, with today's choices. From this point of view, to transfer funds obtained by borrowing or the sale national assets at the moment of consumption is not even to maintain the status quo.

Izvorni jezik
Engleski

Znanstvena područja
Ekonomija

POVEZANOST RADA