Coalition partners agree on draft state budget for next year

Slovakia’s ruling coalition parties have agreed upon a budget for next year with ambitious targets to reduce the public finance deficit. Prime Minister Iveta Radičová informed the media after a meeting of the parties held late on Tuesday, September 21, that the budget will include spending cuts worth €980 million, while an additional €770 million in revenue will be raised through other agreed-upon measures, including a one-point increase in value added tax to twenty percent. Next year’s public finance deficit should thus narrow by 2.5 percent of gross domestic product (GDP).

Slovakia’s ruling coalition parties have agreed upon a budget for next year with ambitious targets to reduce the public finance deficit. Prime Minister Iveta Radičová informed the media after a meeting of the parties held late on Tuesday, September 21, that the budget will include spending cuts worth €980 million, while an additional €770 million in revenue will be raised through other agreed-upon measures, including a one-point increase in value added tax to twenty percent. Next year’s public finance deficit should thus narrow by 2.5 percent of gross domestic product (GDP).

The prime minister also said, as quoted by the SITA newswire, that the coalition partners were able to agree upon austerity measures and at the same time secure sufficient funds for the government’s priorities. According to Radičová, the budgets for construction of highways and roads, support for employment and families, and all flood prevention and protection measures have been raised. Teachers should get more money too, she added. The cabinet will debate the draft budget today (Wednesday, September 22) and it should be submitted to parliament on Friday, September 24. The ambition of the new centre-right government is to cut the public deficit to three percent of GDP by 2013. Next year, the deficit is expected to reach 4.9 percent, while latest prognoses estimate the gap will reach 7.8 percent this year.

Source: SITA

Compiled by Zuzana Vilikovská from press reports
The Slovak Spectator cannot vouch for the accuracy of the information presented in its Flash News postings.

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