BRATISLAVA, October 10, (WEBNOVINY) — The Cabinet of Robert Fico on Wednesday approved its first draft general government and state budget of its current term in office. It foresees a reduction of the general government deficit next year to 2.94 percent of GDP. Compared with the approved budget for this year, cash deficit should fall by more than EUR 600 million in 2013. While this year’s budgeted deficit is EUR 3.675 billion, for next year the Finance Ministry plans a state budget deficit of EUR 3.059 billion. Total state budget revenue should rise by EUR 552 million to EUR 14.177 billion and budgeted expenditures should fall by EUR 65 million to EUR 17.235 billion.
As Prime Minister Robert Fico said at a subsequent news conference, the draft budget is absolutely realistic, it guarantees for Slovakia a place in the core of Europe and is ready to respond to various crisis phenomena. According to him, Slovakia will be on the way to Europe especially as it presses its deficit below 3 percent of gross domestic product. „We took a path that we defined very clearly at the beginning. In particular we are consolidating and will consolidate at the expense of banks, monopolies, and large companies. We refused to raise the VAT rate, the government will not take this path,“ said Fico, who also called on the opposition to be realistic during the parliamentary debate about the budget, although he does expect from them some „folklore art creativity.“ „I declare also for the opposition, 2.94 percent [of GDP deficit] is Slovakia’s path to Europe,“ he said.
General government revenue is budgeted at EUR 25.7 billion on expenses of EUR 27.886 billion. The budgeted deficit of the general government budget in financial terms represents EUR 2.187 billion. For the coming years, the Finance Ministry plans to continue to reduce the deficit to 2.4 percent of GDP in 2014 and to 1.9 percent in 2015.
The proposed state budget deficit should be more than EUR 250 million lower than in the original draft budget from August. The proposed state budget revenue is EUR 580 million higher at EUR 14.18 billion and expenses increased by more than EUR 320 million compared to the original draft to EUR 17.24 billion.
SITA
