After concluding his inspection visit at the Finance Ministry led by finance minister Peter Kažimír on Tuesday, Prime Minister Robert Fico said that the department has managed the consolidation of public finances well, however from now on it should concentrate more on measures to support economic growth. “The finance department managed in 2012 and also in 2013 its key task; being the consolidation of public funds. I appreciate that the minister perceives the process of consolidating public finances not only as a technocratic matter but as a matter that influences people’s lives,” stated Prime Minister Fico.
He underscored that the last year’s performance of the general government is attributable to the efforts of the department’s new management. Fico says that while the previous government left behind unrealistic aims, the originally planned deficit of 4.6 percent of GDP was maintained. The final gap can be even a tenth of a percentage point narrower, believes Fico. Public finances are developing similarly this year, underscoring that nothing has changed in regard to the plans to squeeze the country’s deficit below 3 percent of GDP this year. After talks with the prime minister, Kažimír talked on how the €360 million shortfall in the state budget, which he mentioned some weeks ago, will be covered. More than €230 million will be allocated straight to this from the reserve gained after some savers left the second pension pillar, almost €70 million will be taken from higher dividends from SPP and SEPS, and €59 million will be acquired via various spending cuts and savings in the budgets of individual ministries. After the introduction of consolidation measures, the finance ministry is now aiming to pay more attention to measures supporting economic growth, in particular helping small to medium sized companies. A shuffle in the state budget has also meant that an additional €15 million will be used as a one-off injection for self-governments to finance repairs of damaged road surfaces.
Gavin Shoebridge
