BRATISLAVA, April 17, (WEBNOVINY) — Keeping the government deficit within the cap of 4.6 percent of gross domestic product (GDP) this year will require additional measures, according to Finance Minister Peter Kazimir (SMER-SD). The European Commission is of the same opinion, the finance minister said after returning from Monday’s meeting with EC Commissioner for Economic and Financial Affairs Olli Rehn in Brussels. Kazimir added that the EC currently estimates Slovakia’s budget deficit in 2012 at 5 percent of GDP.
„I did not have any arguments in my hands that would refute this statement,” Kazimir told the press on Tuesday, adding that this year’s budget contains several risk elements. The biggest risk is coverage of wage entitlements of doctors and nurses, as well as tens of millions of euros needed to secure strategic crude oil reserves. Kazimir also sees the development in state-run railway companies as a problem, while potential corrections in EU funds may also arise.
In spite of this, the government of Robert Fico is resolved on maintaining the budget deficit this year within the 4.6 percent-cap of GDP. According to Kazimir, whether the government will be able to achieve a smaller deficit will depend on the way the risk elements in the health care sector and railway companies are resolved.
SITA