The final form of a package of revenue and expenditures changes to consolidate Slovakia’s public finance deficit for next year by an amount of €1.7 billion remains elusive after negotiations on August 31 by the leaders of the country’s four centre-right parties that make up the government, the SITA newswire wrote.
An open question remains the possible increase in the value added tax rate, which has been mentioned as one of the alternatives.
“This is a question which I cannot answer today, because today we have alternatives and proposals and until we thoroughly contemplate and calculate them, I will not be giving an answer. Next week, I will respond,” Prime Minister Iveta Radičová told the SITA newswire after the Coalition Council meeting on Tuesday night.
The government's consolidation package should have a clearer form next week when, according to the Prime Minister, working groups will have met again for more talks and the Coalition Council will then meet to arrive at a definite decision.
She announced that at this point, the only clear thing was that spending cuts in next year's budget would amount to at least €900 million. Increased revenues should contribute to the consolidation package by the maximum amount of €800 million.
Measures on the revenue side, however, were not completed even after Tuesday's negotiations between the coalition leaders. A final agreement has also not been achieved on payroll contributions for social insurance and health insurance.
Overall, consolidation measures should ensure reduction of the general government deficit by €1.7 billion. The goal is to reduce the government deficit to 3 percent of GDP in 2013.
Compiled by Zuzana Vilikovská from press reports
The Slovak Spectator cannot vouch for the accuracy of the information presented in its Flash News postings.
2. Sep 2010 at 14:00