The package of 15 measures worth €250 million per year as unveiled by the governing Smer-SD party over the past weekend will bring benefits to people, but it lacks initiatives that would improve the state of public finances, claim analysts.
The package, which Prime Minister Robert Fico said is designed to improve the living standards of people, will consist of measures such as an increase in the minimum wage and Christmas bonus contributions to pensioners, a reduction in levies in the category of low-income employees, introduction of a minimum pension, a double-digit drop in gas prices for households and free railway transport for pensioners and students. “The latest economic developments and improvements in tax collection show that with better revenues new possibilities emerge for the state” said Tatra Banka analyst Boris Fojtik. That said, he noted that the benefits for selected groups of people will have little benefit on the Slovak economy as a whole. J&T bank analyst Stanislav Panis voiced special appreciation for proposed tax relief to apply to investments in science and research and support for technological start-ups. Slovenska Sporitelna analyst Maria Valachyova embraced efforts to raise the income of low-earners, boost the number of nursery schools and kindergartens and support research and development. On the other hand, analysts claim that what is lacking are measures aimed at cutting the budget deficit and debt. Finance Minister Peter Kažimír has said that the batch of measures won't jeopardise Slovakia's fiscal goals and thus won't trigger a rise in debt or deficit.
