Operating the country costs the public Sk342 per day, which amounts to around Sk125,000 annually, according to the INESS Economic Institute.
The institute concluded that public administration expenditures went up again by 11.8 percent this year, which is significantly more than the anticipated inflation for this year, the SITA newswire wrote.
The institute interprets this development as an expansion of the public sphere to the detriment of private entities. INESS assumes that high growth of revenues from tax and compulsory payments into insurance funds, which could reach 11.6 percent, creates room for cutting the share of the public finance deficit, even despite higher public expenditures.
INESS stresses that this growth will not last forever. Moreover, if economic growth weakens, too, there will be no funds for further increases in public expenditures, which is why the institute recommends that the government cut expenditures, taking into consideration growing deficits of the first state-run pension pillar, as well. The institute also evaluated the state budget for this year. INESS points to some disproportions, for example direct payments to farmers are higher support for people in material need.
Moreover, the state spends more money on rural development than on universities. The institute also elaborated a project entitled "The State's Wasting of Money," which points to ineffective use of public funds. INESS pointed out that over the last six months, the state used around Sk9.6 billion ineffectively, according to information published in media. SITA
6. May 2008 at 19:00