BRATISLAVA, March 28, (WEBNOVINY) – Should the Slovak economy grow 1.1 percent this year and 2.7 percent next year, the new government will need cuts totaling EUR 1.166 billion to squeeze the deficit below 3 percent in 2013. This information stems from the public administration budget outlines for 2013-2015 which the Finance Ministry has forwarded for review. However this material worked with a pessimistic growth prognosis from February, while the ministry itself revised the projection upwards in March. Based on the latest estimates, the Slovak economy is expected to bolster 2.3 percent, translating into an additional over EUR 50 million for the state coffers. The new government will have to save some EUR 1 billion next year anyway.
The submitted paper includes all claims compliant with the applicable legislation plus the cancellation of TV license fees effective as of January 2013. Then again it does not spell out any special austerity measures or funding of priorities that will depend on the decisions of the new Cabinet. “The budget outlines are a technocratic basis for the 2013-2015 budgets. It will be, as usual, necessary to thoroughly debate budgets with respective state budget chapters and other public administration entities before the submission of the draft budget [that is to be done] until August 15,” the ministry explains.
Taking into account all parameters and the originally prognosticated 1.1 percent GDP growth, the Finance Ministry calculated that the deficit in 2012 will reach 4.6 percent of GDP. Unless no further measures were passed, the deficit would account for 4.5 percent in 2013 and 4.2 percent in 2014. The public finance debt would come up from last year’s 43.3 percent of GDP to 47.6 percent this year and 49.2 percent a year later.
SITA
