BRATISLAVA, April 8, (WEBNOVINY) — The Ministry of Finance wants to look into economic achievements of the companies with participation of the state. The ministry plans to adopt measures to boost effectiveness of their operation, which would increase potential sources for the state budget. “There is and seemingly will be significant tension in public finances in the coming years. Boosting effectiveness of operation of the companies fully or partially controlled by the state represents one of the most important potential additional finances for state coffers,“ stated the ministry in a proposal of draft measures for improvement of economic results of companies with the government’s equity stake.
The ministry suggests adoption of the brand-new legislation regulating administration of state-controlled companies. “Current legislation that applies to state-controlled companies proves to be insufficient in practice, mostly in form of unsatisfactorily transparent operation of these companies, significant differences in economic results and problems with handling their property,“ stated the ministry. The ministry opines that the state can directly, specifically and transparently influence management of state funds allocation in companies established or fully controlled by the state. “The state currently exercises control passively, which often results in bad management decisions and increase in the burden on public finances,“ warned the ministry.
Ministries of Transport, Environment, Agriculture and Economy should submit by late June reports on economic performance of companies, which the state established, or where it controls 100 percent, for years 2009 and 2010 and their financial plans for the period until 2014, according to the proposal of the Ministry of Finance. The Ministry of Justice should submit a draft bill that would secure control of selected companies controlled by the state and improvement of their results by the end of September.
SITA
