BRATISLAVA, May 4, (WEBNOVINY) — On Wednesday, the Cabinet of Iveta Radicova postponed the scheduled debate and approval of the draft outlines of the general government’s budget for 2012-2014 for the second time. While at its session on April 20, the Cabinet interrupted the debate until the coalition leaders discuss it, this week the Cabinet omitted the material from the agenda completely. It should return to it next week.
The Finance Ministry has outlined several proposals to increase tax revenue of the state budget in the material. The coalition member SaS party, however, announced on Wednesday that it would not support any proposal resulting in increasing tax rates.
The OKS party, which has four deputies in Parliament within the MOST-HID caucus, considers cuts in public spending as proposed in the draft outlines of the state budget insufficient. According to a press release provided to the media, the party rejects to any further tax hikes, whether local or excise, increase in the tax and contribution burden of tradesmen, other self-employed persons and contract agents. OKS maintains that the government should not concentrate on increasing budget revenue but on an overall decrease of public spending. The party insists that the government should undertake to reduce spending more radically. They also consider the pace of decreasing the deficit outlined in the material insufficient.
The Finance Ministry’s material states that basic expenditures for the state’s operation should shrink by almost EUR 80 million to EUR 9.4 billion. Behind the drop should be a 5-percent decline in costs of purchases of goods and services, freezing personnel costs at 2011 levels, with the exception of teachers’ salaries, which are to grow by 3 percent, and reduction of some capital expenditures, budgeted as priorities for this year.
On the side of revenues, the Finance Ministry proposes introduction of a bank levy for financial institutions that is to raise EUR 40 million. The ministry also proposes increasing the excise tax on beer and still wine.
SITA
