BRATISLAVA, September 22, (WEBNOVINY) – On Tuesday night, the ruling coalition partners agreed upon an ambitious consolidation budget for next year. Prime Minister Iveta Radicova informed the media after the meeting that the budget includes spending cuts worth EUR 980 million, while additional EUR 770 million in revenue will be raised through other agreed-upon measures, including the one-point increase in the value-added tax to twenty percent. Next year’s deficit of public funds should thus narrow by 2.5 percent of the gross domestic product (GDP).
The prime minister continued by saying that the coalition partners were able to agree upon austerity measures and at the same time secure sufficient funds for the government’s priorities. According to Radicova, the budgets for building highways and roads, support of employment, family and all flood prevention and protection measures have been raised. Teachers should get more money, too, she added. The Cabinet will debate the draft budget for next year on Wednesday and it should be submitted to Parliament on Friday, September 24.
The ambition of the new center-right government is to squeeze the deficit of public funds to three percent in 2013. Next year, the deficit is expected to reach 4.9 percent, while latest prognoses estimate the gap to reach 7.8 percent this year.
SITA
