THE SLOVAK CABINET yesterday approved a directive establishing the distribution of income tax revenue worth more than Sk33 billion (€830 million) to individual municipalities, under the fiscal decentralisation programme.
According to the daily Pravda, the towns and villages will get Sk23.5 billion of the package and the regional authorities will get Sk7.9 billion. The cabinet will keep 6 percent of the tax revenue.
When determining the criteria for distributing the funds attention was given to make sure that existing differences between individual regions are eliminated, said the cabinet’s plenipotentiary for public administration reform, Viktor Nižňanský.
The ruling Hungarian Coalition Party’s cabinet ministers refrained from voting on the matter as their party demanded that for next year municipalities should be granted 95 percent of their 2004 incomes. The Finance Ministry has agreed with the Towns and Villages Association of Slovakia, however, that the income should be guaranteed at 87 percent.
Compiled by Martina Jurinová from press reports
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