Government unveils second social package

The in-the-works measures from the Government's second social package will neither exacerbate Slovakia's debt, nor its deficit, Prime Minister Robert Fico told a press conference on Tuesday. In all, the Cabinet is set to spend €1 billion on three social packages. "We delivered on the first package, which was worth €250 million, 100 percent, and the deficit and debt are both falling. Let me point out again what the agency S&P had to say - there's no need to fear the social packages, because they're primarily funded from higher levels of tax collected, by the fight against tax evasion, and obviously by an economy that is doing better, because both external and internal factors have kick-started the economy as a whole", said the premier. The Government expects that improvements in the level of tax collected will yield an extra €1.6 billion between 2014-16, said Fico. "We're making good on this plan, so I can say that the overall value of the first, second and third social packages will be €1 billion", said Fico. The third social package is to be unveiled this December. One of the first measures within the second social package that is to be discussed by the Government on August 26 is halving the 20-percent VAT on selected foodstuffs. "We're in the final stages of this. We're putting the finishing touches to the list of items. But what I said at our (Smer-SD party) congress still holds - we're speaking about fresh meat, milk, bread and some fish products here", said the premier. It was announced earlier that the package is also envisaged to enact legislation designed to aid regions plagued by unemployment higher than 20 percent with tax relief schemes such as levy relief, different access to investment support and a different approach to infrastructure projects. "In Bratislava, on August 18 we'll be holding consultations between mayors, entrepreneurs and local municipality officials from areas where the jobless rate tops 20 percent", said Fico. As part of the second package, maternity benefits should be increased from 65 to 70 percent of a parent's income, while the state's child care allowance for parents of children up to three years of age is to be raised from €230 to €280.