Saturday April 11, 08:18 PM
IMF urges Croatia to aim for smaller government
ZAGREB (AFP) - The International Monetary Fund has urged Croatia to revamp and downsize its giant public administration amid the global financial crisis.
Croatian officials "should aspire to have a smaller, better paid, more dynamic and efficient public administration at all levels," an IMF delegation wrote in a report after a two-week working visit.
The report was posted Saturday on the Croatian Central Bank's website.
The IMF says Croatia can already begin the reforms this year despite government forecasts of a two percent contraction of the economy in 2009.
The reforms are needed to prove that Croatia has the tools to overcome the global economic crisis, according to the IMF.
The Croatian state employs 65,000 people, without counting municipal and regional government workers, in a country of 4.4 million people.
The drop in revenue since the start of the year has forced the government to cut salaries by six percent.
The government has vowed to save public service jobs despite the economic crisis.
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