BRATISLAVA, August 11, (WEBNOVINY) — Slovakia should continue with its budgetary consolidation next year. Cost cots are part of the first proposal of the draft state budget for next year published by the Finance Ministry on Thursday. The budget deficit is planned at EUR 3.172 billion, down EUR 637.6 million from the gap approved for this year.
The general government deficit should be cut to 3.8 percent of GDP next year, according to the proposal from the Finance Ministry, which is in compliance with the original plan to consolidate public finances. The department aims to squeeze the general government gap below the Maastricht criterion of 3 percent of GDP already in 2013. The general government deficit is projected at 4.9 percent of GDP in 2011. The gross debt of the general government should amount to EUR 33.441 billion, i.e. 44.8 percent of GDP next year.
Total revenues of the state budget next year should be EUR 15.27 billion next year, proposes the Finance Ministry, an increase of over 16 percent compared with this year’s plan. However, expenditures should grow more modestly and be 8.8 percent higher compared with the budget approved for this year amounting to EUR 18.443 billion.
The ministry said that the first budget draft includes only basic priorities so far, represented by education and road and railway infrastructure. Further political priorities and their funding will be high on the agenda of upcoming coalition talks. The draft does not include any of the planned tax hikes, says Finance Minister Ivan Miklos. However, requirements of departments exceed revenues from potential additional measures to generate resources at 10:1 ratio. “There will be some space but will be considerably restricted,” he said.
By submitting the draft budget the Finance Ministry has fulfilled the law-set duty to submit the completed draft budget to the Cabinet by August 15, which is Sunday. The Cabinet should approve it by September 30 and sent it to parliament by October 15, in accordance with the law on budgetary rules of public administration.
SITA