BRATISLAVA, September 9, (WEBNOVINY) — Public finances need to be stabilized as soon as possible, states the National Bank of Slovakia in its statement on the recent development in the eurozone and in Slovakia. Moreover, structural reforms aiming at increasing the flexibility of the economy and support of sustainable economic growth in the long run need to be implemented.
“It is necessary that the Slovak government implement measures to stabilize public funds as soon as possible in order to secure a balanced budget or potentially with a surplus in the medium term in line with the Stability and Growth Pact,” the NBS statement reads.
The central bank welcomes activities of the government and deems necessary to implement a reform of the fiscal framework as soon as possible. This comprises consolidation of public funds, adoption of a law on budgetary responsibility with expenditure caps, a debt cap, an independent fiscal council, including sanctions, together with strict rules of economic performance of municipalities and counties.
The National Bank of Slovakia also encourages the government to push forward additional reforms, such as the reform of taxes and payroll levies that would ensure adequacy of state revenues and increase effectiveness of collection of tax revenue. In addition, the bank points attention to the need of a reform of the pension system that would secure a long-term sustainability as well as improvement of the business environment.
SITA
