Economy and Finance Minister Nikos Christodoulakis yesterday told listed public utility chiefs to rein in rate increases in 2004 and avoid favoritism in hirings during the pre-election period. He asked them to limit hikes to the minimum possible to avoid fueling inflation, keep borrowing at this year’s levels and not to make any social insurance concessions in the collective bargaining agreements that would lead to a rise in labor costs. Separately, the government unveiled a draft bill providing for an overhaul of the fiscal auditing system in public spending which focuses only on certain expenses. The new system means a departure from present formal controls toward an evaluation of management systems and internal audits, both in the ministry itself and the recipient organizations of public funds. The bill provides for internal auditing units and the gradual achievement of balanced budgets in all public organizations with budgets of more than 5 million euros, including public utilities, local government authorities and social insurance funds. State budgets will have to be balanced after 2004 and those of public enterprises within five years. The document, which has been two years in the making, provides for the setting up of five powerful fiscal control centers and a central ministry committee which will evaluate audits and monitor the professional conduct of auditors. Another committee will be responsible for checking the property declarations of Finance Ministry staff and tax officials.