BRATISLAVA, October 13, (WEBNOVINY) — The government plans to save millions on debt management thanks to more effective use of sources from the State Treasury. “Use of about EUR 900 million that the State Treasury had been depositing in commercial banks until the summer for financing of the state debt will cut the costs on state debt financing by about EUR 20 million annually,” stated spokesman of the Finance Ministry Martin Jaros.
He said that the ministry also started saving on the smallest items when it cancelled for example newspaper subscriptions or prevented extension of business trips by extra days above duration of the official program. Saving at the ministry also affected employees when their ranks were reduced by thirty people compared with July and about the same number of employees should be laid off in the coming months.
Jaros says that significant saving also concerns information systems as some contracts on supply of some non-priority systems like accounting registers or price information system were terminated. “Talks with suppliers of other information systems with extraordinarily disadvantageous prices are underway at the moment. For example the price of supplied licenses is four times higher than the average market price and the expensive system offers only a marginal added value for the operation of the ministry when it solves for example electronization of vacation tickets or traveling orders, which it really not a priority issue for the ministry,” added Jaros.
He says that similar cost cuts are introduced at other ministries as well. “We believe that the fact that the Transport Ministry did not extend the deadline to conclude the contract on the first package of PPP projects for highway construction was the source of the highest volume of saved sources. The ministry will finance highway construction mainly by drawing EU funds,” said the spokesman of the Finance Minister. In addition to that, several ministries are reassessing many contracts on information systems and considering layoffs.
Jaros underscores that despite Cabinet’s presently introduced austerities, their effect will only be registered gradually. “Although electronic auctions will secure some saving, supplies for this year have already been contracted and lower prices will not be applied before January,” he concluded. The spokesman points out that the current situation is a result of actions or absence of actions of Robert Fico’s government and former Minister of Finance Jan Pociatek. “The current Finance Ministry’s leaders aim to increase effectiveness of utilization of taxpayers’ money in the state administration in the future. On that account, the ministry submitted for interdepartmental review a conceptual material that should be the groundwork for the search for possible positive systemic changes at all ministries.
SITA