BRATISLAVA, April 10, (WEBNOVINY) — Consolidating public finances will be a priority of the second government of Robert Fico. The prime minister formulated the basic task of his cabinet after talks on Tuesday with the Governor of the National Bank of Slovakia (NBS) Jozef Makuch in presence of Finance Minister Peter Kazimir. “We have confirmed our commitment to cut the general government deficit below three percent of GDP in 2013,” said Fico specifying that a portion of consolidation measures will pertain also to the banking and financial sectors.
The government will have to save some EUR 1.2 billion to achieve this goal in the following months. Kazimir however said that the Cabinet’s ambition will be to save around EUR 400 million more to have funds to finance also the priorities of the new government. He said that the consolidation will take place mainly on the side of revenues also due to the lack of time. However, attention will be also paid to expenditures. They will be saved also by canceling specialized state administration, which however will bring savings later.
Prime Minister Fico confirmed that measures bolstering revenues of the state budget should hit in particular those who have enough money. This is why the banking and financial sectors, highly profitable firms and high-income individuals should contribute to the consolidation. Some measures can have interim character. “We do not want to make any decisions that are authoritative but we want to agree with the banking and financial sectors on in what time horizon banking houses can participate in consolidation public finances,” said Fico.
Minister Kazimir said that SMER-SD representatives negotiated with commercial banks even before elections. According to him the banking sector is prepared to contribute to recovering public finances more than it has until now. Talks with banks pertained mainly to three spheres: the bank levy, the program of purchase of government bonds and protection of consumers on the financial market.
Makuch said that the central bank has not changed its stance regarding the bank levy that it considers a not good solution. The central bank is here to point at risks and will continue doing so, said the governor. The prime minister replied that the government will take experts’ stances seriously. He said that the governor has the door open at each Cabinet session.
Parliament approved this year ‘s budget with a gap of 4.6 percent of GDP. The original plan counted with a more radical consolidation at 3.8 percent of GDP but the plans hit obstacles represented by the deepening financial and economic crisis and the collapse of the Iveta Radicova government. The state budget for this year sets expenditures at EUR 17.3 billion and revenues at EUR 13.6 billion. The gap should exceed EUR 3.6 billion.
SITA