Parliament acknowledges Stability Programme 2014-17

In 2013, Slovakia brought the deficit below 3 percent of GDP to 2.77 percent, which was a fundamental condition for the country to leave the eurozone’s procedure for countries with excessive public finance deficits, reads the Stability Programme for 2014-17 acknowledged by the parliament on May 14. According to the document, government managed to reduce the so-called structural deficit from 3.8 percent in 2013 to the recent 1.9 percent. To reduce the deficit, the government needed to adopt cuts amounting to more than €1.5 billion. Finance Minister Peter Kažimír has already announced that the government will have to continue with consolidation efforts also in the years ahead. He accentuated, as quoted by the TASR newswire, the need to continue to pursue consolidation efforts in 2015, as the ministry expects the deficit to drop to 2.49 percent next year. The ministry is also planning to adopt further measures such as removing some exemptions in the use of cash registers and introducing a withholding tax on income from sales of scrap metal. It also envisages sticking to its programme of enhancing the collection of VAT. In the context of May 14 debate on the issue in parliament, opposition MPs criticised the document blaming the government for reducing the public deficit in an unsustainable way – through one-off measures – and for the deterioration of the business environment.

In 2013, Slovakia brought the deficit below 3 percent of GDP to 2.77 percent, which was a fundamental condition for the country to leave the eurozone’s procedure for countries with excessive public finance deficits, reads the Stability Programme for 2014-17 acknowledged by the parliament on May 14. According to the document, government managed to reduce the so-called structural deficit from 3.8 percent in 2013 to the recent 1.9 percent.

To reduce the deficit, the government needed to adopt cuts amounting to more than €1.5 billion. Finance Minister Peter Kažimír has already announced that the government will have to continue with consolidation efforts also in the years ahead. He accentuated, as quoted by the TASR newswire, the need to continue to pursue consolidation efforts in 2015, as the ministry expects the deficit to drop to 2.49 percent next year.

The ministry is also planning to adopt further measures such as removing some exemptions in the use of cash registers and introducing a withholding tax on income from sales of scrap metal. It also envisages sticking to its programme of enhancing the collection of VAT.

In the context of May 14 debate on the issue in parliament, opposition MPs criticised the document blaming the government for reducing the public deficit in an unsustainable way – through one-off measures – and for the deterioration of the business environment.

(Source: TASR)
Compiled by Zuzana Vilikovská from press reports
The Slovak Spectator cannot vouch for the accuracy of the information presented in its Flash News postings.

Top stories

ETP: State could learn from our work with Roma

WHILE some mayors struggle to improve life in segregated Roma settlements, the non-profit organization ETP Slovakia has helped hundreds of marginalized people construct their own houses. 

Slávka Mačáková, the director of ETP Slovakia

BLOG: Central Europe enjoys strong start into a turbulent year

While the first readings of the year from CEE industry are encouraging, the worrying signals from its dominant export markets emerge.

A fourth carmaker, the British Jaguar Land Rover (JLR) company, is coming to Nitra.

First Slovak Holocaust museum opens Photo

THOSE who survived and were able to return to the former work- and concentration camp in Sereď, now turned into the first Museum of Holocaust in Slovakia, agree that it should have happened long ago.

Holocaust Museum in Sereď

Nurses lost their fight for salaries

THOUGH more than 500 nurses left hospitals in late January, it was not enough to persuade the government to accept their conditions.

President Andrej Kiska met with representatives of nurses.