Slovakia’s public finance consolidation sufficient, says budgetary council

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.

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.

Top stories

 Danubiana Meulensteen Art Museum

Slovak art dabbles in diversity

ADMIRERS of Andy Warhol might have already marked Slovakia on their map since the king of pop art was of Slovak origin. The country is rich in artistic tradition and boasts a large number of art galleries and…

A long wait is in store for foreigners seeking residence permits.

Interior Ministry still approaches foreigners in Slovak

IN ORDER to avoid endless waiting lines in Bratislava’s Office of the Border and Alien Police, the police called on foreign students to prolong their stay. However, foreigners not speaking Slovak may have difficulty…

The AeroMobil 3.0

Government okayed support for flying car development

BRATISLAVA-based company AeroMobil R&D, which is engaged in the development of a flying car, will be granted investment assistance of nearly €6 million from state coffers towards research and development activities,…

Slovakia in for tropical days, temperatures may reach 38 degrees

PEOPLE in Slovakia will have to prepare for some very hot weather in the days ahead, with the temperature possibly rising to 36 degrees Celsius in southern regions this weekend and to 38 degrees next week, Jozef…