The government wanted to have the budget for next year ready by September. There is still no information about the progress of the negotiations and the coalition partners continue to talk about their own conditions. The opposition warns that time for an agreement is running out and the state budget remains the coalition partners' strongest negotiating argument. According to the law, the government should submit a draft state budget to parliament no later than October 15. It should contain consolidation and pro-growth measures.
Both coalition partners, SNS and Hlas-SD, continue to link their support for the budget to their respective demands. Hlas-SD opposes any changes affecting the second pension pillar. SNS is calling for a higher income threshold for self-employed people below which they would not have to pay taxes and social contributions. It is also demanding higher pensions for people aged over 90.
The Council for Budget Responsibility warns that the government will have to continue cutting costs. It will need more than a billion euros to meet its own targets.
“If the government and parliament do not adopt new permanent consolidation measures when preparing the upcoming budget, the Slovak economy will show unsustainably high deficits and the resulting rapidly growing public debt.”
The leaders of coalition parties are to meet before a cabinet meeting scheduled for the end of August.
Source: STVR
