BRATISLAVA, October 7, (WEBNOVINY) – The Ministries of Education, Health and Environment are some of the winners of the coalition talks about budget priorities. The in-advance proposed objective related to transport infrastructure has been preserved, as well. Transfers of finances among budgetary chapters will cover priorities of the Ministries of Defense and Interior. Additionally, the draft budget will contain a 50-million-euro reserve to avert impacts of a potential economic downturn, Finance Minister Ivan Miklos (SDKU-DS) reported Friday. He reiterated that an increase in the bank levy from the originally proposed 0.2 percent of selected liabilities to 0.4 percent will be the main source. The hike is expected to bring about an additional EUR 40 million.
The state is bullish about dividends from state-owned companies that are expected to bring an additional EUR 50 million; EUR 15 million from Transpetrol, EUR 5 million from Vodohospodarska Vystavba, EUR 20 million from Lesy SK and EUR 10 million from joint-stock companies partially controlled by the state, particularly those in the energy industry. The Finance Ministry will update these figures in early November. Miklos opines that the volume could be even higher. An auction of emission allowances, in compliance with the new scheme effective as of 2013, is projected to result in a 27-million-euro income. First auctions canl take place already next year.
The Education Ministry will ultimately gain 5 percent more y/y per pupil at regional level and 4.7 percent per student more for higher educational institutions. An additional EUR 10 million will be spent on the Minevra project. The Transport Ministry will have EUR 1.9 billion for transport infrastructure. Public funds for the Health Ministry will increase by over EUR 20 million to EUR 100 million. Budget for flood prevention measures will increase EUR 25 million.
The Ministries of Defense and Interior will finance their priorities from a reserve earmarked for construction of the St. Michael Hospital. The Interior Ministry is to get EUR 20 million for the Schengen system. The Defense Ministry will obtain the same sum for its priorities.
The ministry plans to reassess its macroeconomic prognoses in the coming weeks. The reevaluation will show whether more measures must be adopted to attain the planned deficit of 3.8 percent of GDP next year. The 1-percentage point downgrade of the projected GDP growth in August triggered the need for an additional EUR 240 million.
“The next revision will be available in early November. We have put aside EUR 50 million, if the situation worsens. But should it be as much worse that this sum won’t be enough, then we will, of course, act and pass further measures,” Miklos told journalists on Friday but refused to elaborate. The minister admitted that the partners might even return to potential increase in excise tax on alcohol that is “passé” regarding the next year’s budget for the time being.
The Finance Ministry has tabled a new wording of the state budget blueprint this week after it had to revise its macroeconomic prognosis under the influence of global market development. The latest draft budget projects revenues at EUR 15.281 billion and expenditures at EUR 18.524 billion on a EUR 3.243 billion deficit. This version does not include budget priorities of coalition parties.
The budget objective as a whole remains unchanged. The Finance Ministry still counts on deficit reduction from 4.9-percent of GDP planned for this year to 3.8 percent in 2012. The Cabinet is supposed to discuss the budget next Wednesday. The budget bill must be submitted to parliament by October 15 at the latest.
SITA