Spectator on facebook

Spectator on facebook

Parliament clears 2014 budget

Parliament approved the state budget for 2014, with the deficit projected to reach 2.64 percent of GDP. Eighty-one out of 145 MPs in the chamber voted for the bill, while 62 were against it December 12. All MPs present from the governing Smer-SD party backed the budget while all but two opposition legislators voted against it, the TASR newswire wrote. Štefan Kuffa of ‘Ordinary People’ (OĽaNO) abstained from voting, Independent MP Radoslav Procházka didn’t vote at all. The draft, which was amended in parliament, envisages the deficit to reach €3.284 billion. Revenues should stand at €14.108 billion while expenditure is projected to reach €17.392 billion. The initial proposal envisaged a slightly bigger deficit – €3.386 billion. The largest portion of funding in the 2014 budget is to be allocated to the Transport, Construction and Regional Development Ministry -- €2.257 billion. Next, comes the Labour, Social Affairs and the Family Ministry, and the Interior Ministry on €2.211 billion and €2.018 billion, respectively.

Parliament approved the state budget for 2014, with the deficit projected to reach 2.64 percent of GDP. Eighty-one out of 145 MPs in the chamber voted for the bill, while 62 were against it December 12.

All MPs present from the governing Smer-SD party backed the budget while all but two opposition legislators voted against it, the TASR newswire wrote. Štefan Kuffa of ‘Ordinary People’ (OĽaNO) abstained from voting, Independent MP Radoslav Procházka didn’t vote at all.

The draft, which was amended in parliament, envisages the deficit to reach €3.284 billion. Revenues should stand at €14.108 billion while expenditure is projected to reach €17.392 billion. The initial proposal envisaged a slightly bigger deficit – €3.386 billion. The largest portion of funding in the 2014 budget is to be allocated to the Transport, Construction and Regional Development Ministry -- €2.257 billion. Next, comes the Labour, Social Affairs and the Family Ministry, and the Interior Ministry on €2.211 billion and €2.018 billion, respectively.

The parliamentary debate on the bill featured mostly opposition MPs. They claimed that the budget only creates an illusion of consolidation and only introduces one-off savings measures. The opposition opines that the budget fails to secure the long-term sustainability of public finances. The MPs also bemoaned the state debt’s approaching 57 percent of GDP. If that threshold were breached, Finance Minister Peter Kažimír would need to submit a balanced budget, which the opposition deems impossible in the current situation.

The ministry rejected the criticism and claimed that the consolidation measures are sufficient. Kažimír especially praised the fact that tax collection has been improving, which constitutes the reversal of a long-term trend.

The public deficit is likely drop below 3 percent of GDP in 2014, in line with goals set by the government for next year, a number of analysts concurred for TASR.

According to some analysts, a major problem of the budget is that it hinges on one-time measures and, therefore, the government will likely have to embrace new reforms in 2015.

(Source: 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

Lack of qualified labour needs to be addressed

After visiting carmaker PSA in Trnava, PM Fico says that people do not want to work even for more than €1,300.

PSA Groupe Slovakai in Trnava

Febiofest is a chance to see festival winners and foreign guests Photo

Febiofest, in its 24th year, shows mostly Slovak films, of which nine, including the Cristal Bear winner from Berlinale, The Little Harbour, will be premiered here. All the 11 films shown in the Slovak Film Country…

Drive Your Plough Over the Bones of the Dead by Agnieszka Holland

Largest companies that help search for job or employees

Not only well-known names placed in the list of the 10 largest employment agencies in Slovakia.

Amazon will deliver packages for free

Orders have to exceed €39 to be eligible.