Spectator on facebook

Spectator on facebook

Fico: A 'back door' solution needed in times of crisis

If next year's expectations for the Slovak economy growth don't come to fruition, the Slovak Government has to have a 'back door' solution for the public finances, Prime Minister Robert Fico told the TASR newswire on December 28. The 'back door' solution, according to Fico, could either be across-the-board cutting of budget expenses, or an increase in the already passed budget deficit proposal. Due to the global economic crisis, the Finance Ministry already re-evaluated the economic growth prognoses earlier in 2008 - from initial 6.5 percent to 4.7 percent. The coalition decided to increase the public-finance deficit from 1.7 percent to 2.08 percent of GDP. Fico admitted, however, that the real development could be even worse.

If next year's expectations for the Slovak economy growth don't come to fruition, the Slovak Government has to have a 'back door' solution for the public finances, Prime Minister Robert Fico told the TASR newswire on December 28. The 'back door' solution, according to Fico, could either be across-the-board cutting of budget expenses, or an increase in the already passed budget deficit proposal.

Due to the global economic crisis, the Finance Ministry already re-evaluated the economic growth prognoses earlier in 2008 - from initial 6.5 percent to 4.7 percent. The coalition decided to increase the public-finance deficit from 1.7 percent to 2.08 percent of GDP. Fico admitted, however, that the real development could be even worse.

"This explains the 'back door' solution," he stated.

As far as the across-the-board cutting of budget expenses is concerned, Fico pointed out that it wouldn't concern social programs.

"Social programs and economic growth boosts will stay untouched. We'll look for other possibilities for cuts somewhere else," he said. The PM doesn't exclude the possibility of the public-finance deficit increasing. "I can't exclude it now, since all of the countries are leaving this option open in case the economic crisis worsens ... no country would then hesitate over deficit increase. I guarantee you, nobody will hesitate."

Conceding that during the times of a crisis a balanced budget by 2011 is not the priority, Fico thinks the most important thing is to survive these difficult times in a way that the crisis affects ordinary people as little as possible. 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

Sagan rewrites history Video

Cyclist Peter Sagan becomes the first man to win three consecutive world championships.

When the state can’t keep a secret

A selective leak has tarnished President Kiska’s reputation. But he must continue to speak out about corruption.

President Andrej Kiska

Blog: Why did I come here?

A group of teachers and students from the Bratislava-based school gathered to support their friend, colleague, and fellow foreigner, as she had already tried four times just to get in the door of the foreign police.

Queue in front of the foreigners' police department in Bratislava.

Teachers and scientist support anti-corruption march

They praise the activities of students who may change the current state of corruption.

Organisers of the first student protest, Karolína Farská and Dávid Straka.