BRATISLAVA, October 27, (WEBNOVINY) — Slovakia’s general government deficit will exceed the initial projections next year. Finance Minister Ivan Miklos told journalists on Thursday that 2012 deficit would overstep 3.8 percent of GDP but should not exceed the 4.9-percent level projected for this year. “This should be our aim,” he added. The deficit reduction below 3 percent of GDP, the Maastricht criterion, in 2013 is the fundamental aim of the government.
His ministry will push for three priorities during the parliamentary debate about draft budget revisions; to keep next year’s deficit below this year’s figure, to pass the toughest possible draft bill on budgetary responsibility and to reduce the deficit below 3 percent of GDP in 2013. The ministry further wants to maintain Slovakia’s credibility on financial markets so that the country can refinance itself in the future under the same conditions as now.
The ministry is likely to alter the 2012 draft budget after it updates macroeconomic prognoses and tax revenue projections. Macroeconomic prognoses are to be revised on November 2. The parliamentary committee dealing with tax issues is to convene on November 8.
Miklos pointed out that the new government that will be formed after the early elections next March will have to pass more consolidation measures. This will be the topic of the election campaign. Miklos is convinced that the Cabinet of Iveta Radicova would manage to keep the deficit at the planned level if it had not imploded.
The fiscal hawk announced that the Slovak Association of Towns and Villages (ZMOS) agreed to abide by the prepared budgetary responsibility legislation. Then again, the ministry abandoned the plan to introduce a tax mix to fund self-governments. They will further get a portion of personal income tax but its specific amount will be known only after tax revenue projections are updated.
SITA