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Miklos Dismisses Planned Deficit of 5.5 percent as Illusory
Wednesday 14 July 2010 Zoom in | Print page
Bratislava, July 14 (TASR) - Slovakia is unlikely to stick to its planned deficit of 5.5 percent of GDP in 2010, with new Finance Minister Ivan Miklos saying that "the projected deficit is a mere illusion", TASR learnt on Wednesday.
Speaking after a government session, Miklos questioned statements made by former finance minister Jan Pociatek regarding the feasibility of keeping to the original figure.
The plan can't be maintained especially because collected taxes and deductions are €1 billion lower than estimates made when the budget for this year was being forged.
"Just think about this fact, €1 billion is about 1.5 percent of GDP, which means a 7-percent deficit, rather than 5.5 percent," said Miklos.
In addition, there will be unexpected expenditures, such as in resolving the issue of cash-strapped towns and villages and the damage incurred by the recent floods, he added.
The bad state in which public finances have found themselves is also owing to contracts with unfavourable conditions for the state and court cases. "We'll analyse and make public all these things. We'll make public all contracts that were signed with the state or public institutions," said the minister.
According to Miklos, public finances are unlikely to become healthier until next year's budget.
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