Cabinet to discuss 2007 budget today

THE CABINET of Prime Minister Robert Fico meets today to discuss next year’s state budget, but already there are signs it may not include some of the key promises that Fico’s socialist Smer party made before June elections to raise tax rates for wealthy individuals and corporations, or to split the unified VAT rate.

The state budget draft, a copy of which is available at, proposes revenues of Sk310 billion and expenditures of Sk346 billion for a deficit of Sk36 billion, or about 3 percent of GDP, which would be in line with the Maastricht economic criteria that Slovakia must fulfill if it is to adopt the euro as planned on January 1, 2009.

“The first version of the budget indicates that the government stands by its intention to fulfill the Maastricht criteria in the budget and keep the deficit under 3 percent of GDP,” said Radovan Ďuran, an analyst with the Institute for Economic and Social Studies.

The draft budget, which is likely to go through many rounds of debate and revision before it is submitted to parliament by September 22, does not take into account the government’s proposed lower VAT rate or higher tax on select individuals and corporates, writes the Sme daily.

Analysts pointed out that this was likely less a sign that the cabinet was backing away from its intentions than a reflection of the fact that the laws needed for the tax changes have not yet been passed by parliament.

The cabinet is scheduled today to vote only on the amount of the budget deficit.

Top stories

News Digest: Climate in Slovakia could be similar to Italy's in a few decades

Suburban transport in Bratislava Region to improve, registration for regulated parking in Bratislava launched, utility regulator announces price caps for 2022.

16 h
Waydanovský House, today Martineum, after reconstruction.

Historical house near Bratislava cathedral no longer needs to hide behind Van Gogh

The Waydanovský House, now Martineum, will serve as the background facility for St Martin's Cathedral. Take a look at how it looked in the past and now.

1. dec
Trenčín covered in Christmas lights on November 29, 2021.

Weekend: Ježiško's Christmas Post Office is open, expecting letters from around the world

Make yourself comfortable and explore what has been going on in Slovakia in the past days.

22 h

Culture Ministry looks to create ‘21st century environment’ for Slovak media

Transparency of ownership and financing among proposed overhaul of decades-old laws.

2. dec
Skryť Close ad