In setting the public finance deficit at 2.83 percent of GDP and the growth of the country's economy to 2.2 percent in the 2014 budget proposal, the Government has set realistic targets. However, many argue that the objectives of Robert Fico's Cabinet could have been more ambitious.
"Such a cut [from this year's 2.94 percent of GDP to 2.83 percent in 2014] is not ambitious enough and the Government should have stuck to its obligations to curb the deficit by 0.5 percent of GDP a year," said Tatra Banka analyst Juraj Valachy. "On the other hand, it must be said that the Government has pushed for the ESO public administration reform, which has a potential to bring permanent savings," said Valachy.
The analyst appreciated cutting the corporate tax from its current 23 percent to 22 percent as of January 2014. Conversely, the Government-sponsored measure to introduce so-called tax licences for businesses is viewed in a less-positive light. "Though the reduction in taxes may help many firms create resources for further investments, licences represent a harmful idea. The Government is throwing all businesses into one basket, while in reality it's trying to collect more from them," according to Radovan Ďurana from the Economic and Social Analysis Institute (ENESS).
Christian Democrat (KDH) chief Jan Figeľ has already announced his party will not support the budget that should be submitted by Tuesday. According to Figeľ, the Government's budget proposal focuses rather on upcoming elections than real problems in Slovakia and it fails to address major problems such as unemployment, public debt, and the need for economic recovery. "Never before has Slovakia been in such debt. The debt per capita will reach nearly €8,000 while the debt per household will be at around €22,500 next year," said KDH vice-chairman Milos Moravcik (who is not an MP).
