BRATISLAVA, December 16, (WEBNOVINY) — Slovak President Ivan Gasparovic has signed into law on Friday the state budget bill for 2012. On its basis, the Slovak Republic counts with budget spending next year of 17.23 billion euros and budget revenues of 13.625 billion euros. The deficit is planned at 3.675 billion euros. The general government deficit is projected at 4.6 percent of gross domestic product. The press department of the Presidential Office informed media about bills the president signed into laws on Friday.
Initially, the government of Iveta Radicova (SDKU-DS) presented a bit more ambitious draft budget for next year that counted on 15.36 billion euro revenue, expenditures of 18.681 billion euros and 3.321 billion euros deficit. The general government deficit for 2012 was originally planned to reach 3.8 percent of gross domestic product. The Finance Ministry later had to revise this proposal due to worsening economic outlook but also because of the government collapsed after it lost a confidence vote and planned reforms could not be completed. The planned general government deficit for 2012 had to be revised upward.
According to Finance Minister Ivan Miklos, however, if this year’s deficit at 4.9 percent of gross domestic product is observed, next year’s deficit of 4.6 percent of GDP can still ensure credibility of Slovakia on financial markets, which now appears as a key factor determining the survival of individual countries. According to Miklos, it is also important that the future government continues with consolidation and keeps the three percent of GDP deficit projected in 2013.
Voices were heard recently from several sides arguing that the scope for further consolidation by mere partial adjustment in taxes or spending cuts in some areas is minimal. The Governor of the National Bank of Slovakia Jozef Makuch has openly talked about this earlier this week. He said Slovakia’s state budget needs fundamental structural changes. The Finance Ministry too sees only limited space for across-the-board spending cuts. Miklos sees the way forward in consolidation primarily by putting matters in order in the public administration and streamlining its functioning.
SITA