LAST year’s consolidation of public finances was sufficiently dynamic and thus it is not necessary to launch correction mechanisms in the form of expenditure caps, the Budgetary Responsibility Council wrote in its current report.

The structural deficit achieved 3 percent of GDP and though it was still far from the mid-term target of 0.5 percent of GDP, its annual reduction by 1.9 percent of GDP was more than twice the required level, the Council wrote.

“For these reasons, the Budgetary Responsibility Council says that 2013 saw no significant deviation and it is not necessary to launch a correction mechanism,” reads the council’s report, as quoted by the SITA newswire, adding that its conclusions are identical with those of the Finance Ministry despite a differing method of evaluation.

“In 2013 the Budgetary Responsibly Council estimates a higher structural deficit of 1 percent of GDP, which is the result of combined lower contribution of the economic cycle and higher one-off influences,” SITA further cited the report. “The ministry fully takes over procedures of the European Commission, which under the current assumptions do not have to lead to achieving the medium-term target until 2017.”

Considerable improvement of the structural balance in 2013 creates space for a slower consolidation pace in further years by 0.3 percent of GDP on average, compared with the originally projected trajectory, according to the council.

Source: SITA

Compiled by Michaela Terenzani from press reports.
The Slovak Spectator cannot vouch for the accuracy of the information
presented in its Flash News postings.