Slovakia has softened its consolidation plans, shows the first draft of the general government budget released by the Finance Ministry on Wednesday. According to this material, the government aims to reach next year’s deficit at 2.9 percent of gross domestic product while this year’s budget expected it at 2.4 percent. In 2015, the deficit is projected to fall gradually to 2.57 percent of GDP, finally reaching 1.5 percent in 2016. In order to reduce the deficit next year to 2.9 the Cabinet of Robert Fico must find some €700 million.
For this purpose additional austerity cuts will be introduced such as streamlining public administration and combating tax evasion, says the document. The Finance Ministry and its head Peter Kažimír refused to give more concrete information on the measures the government will take, as they claims these will come out of the September meetings on the individual budgetary chapters. However, the Finance Minister denied that taxes, or any compulsory fees would be further raised. The Finance Ministry also warns that due to budget development risks, the public deficit could rise to 3.04 percent of GDP and thus exceed the 3-percent limit set by European budgetary rules. Regional authorities are perceived as the greatest financial risk that could increase the deficit, the Finance Ministry states. The opposition is not happy with the state budget proposal. The Government does not want to save but has decided to continue in creating more debt, claims leader of the Christian Democrats, currently in opposition, Ján Figeľ.
