BRATISLAVA, December 7, (WEBNOVINY) — The Slovak Parliament has succeeded to adopt the 2012 state budget and general government budgets for 2012 to 2014 on Wednesday evening, fighting off the threat of a provisional budget. The risk of having one grew in recent weeks due to potential proposals for changes which would increase the planned deficit.
Seventy-five out of 133 MPs present supported the budget, 54 opposed it, four MPs abstained from voting. Some opposition SMER-SD MPs were not present at the vote, thus lowering the quorum after the budget was amended with a 50 million euro reserve for health care from resources originally intended for co-financing EU structural funds projects.
According to the adopted budget, the general government could produce a deficit of 4.6 percent of GDP next year instead of the originally planned 3.8 percent. The reasons were updated macroeconomic prognoses and the failure to adopt the tax and payroll levy reform as the Cabinet of Iveta Radicova lost a confidence vote in October and only remains in office in a caretaker role until early elections.
The state budget deficit can thus reach 3.675 billion euros instead of originally planned 3.321 billion. Budget revenues should reach 13.625 billion euros instead of originally planned 15.36 billion. The Finance Ministry also reduced budget expenses from planned 18.681 billion euros to 17.23 billion euros. Minister Ivan Miklos hopes such budget can help maintain trustworthiness of the country in the eyes of investors on financial markets.
SITA