Slovak News Back to the news
IMF Praises Slovakia's Public-finance Consolidation Package
Tuesday 23 November 2010 Zoom in | Print page
Bratislava, November 23 (TASR) - The Government's goal of reducing Slovakia's public-finance deficit below 5 percent of GDP in 2011 and its related consolidation package is well set, according to a report by the International Monetary Fund (IMF) out on Tuesday.
IMF representatives visited Slovakia back in October.
In order to cut this year's estimated 8-percent deficit the Cabinet drew up a package of measures covering 2.5 percent of GDP. Savings on salaries, purchases of products and services and public-sector capital expenditures were designed to account for 1.5 percent, while higher revenues from a temporary hike in VAT and an increase in other tax and contribution rates was aimed at another 1 percent of GDP.
"This consolidation effort is a first step on the way to fiscal sustainability. It offers a proper balance between achieving a significant adjustment while not impeding the recovery unduly," states the report.
In this connection, the Finance Ministry pointed out that the IMF is slightly more optimistic in its forecasts for Slovakia's economic development than the ministry itself. "The ministry expects the package to have a milder influence on price developments, while it predicts stronger economic growth and lower inflation in Slovakia in overall terms," said ministry spokesman Martin Jaros.
The IMF expects the Slovak economy to grow by more than 4 percent this year, with a slight slowdown to 3.75 percent in 2011. The ministry, meanwhile, expects growth to drop from 4 percent in 2011 to 3.3 percent next year.
All rights reserved. Any publishing or further dissemination of press releases and photographs from TASR's resources without TASR's prior written approval constitutes a violation of the Copyrights Act.
