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Coalition Overcomes Bones of Contention in 2011 Budget
Thursday 25 November 2010 Zoom in | Print page
Bratislava, November 25 (TASR) - The leaders of the coalition parties at their session on Thursday resolved issues pertinent to next year's budget, reaching agreement after four hours of talks on several changes that will increase budget expenditures but also make up for this with extra incomes, TASR learnt on the same day.
"The Government is submitting laws and a budget to Parliament aimed at curtailing next year's deficit by 2.5 percent, or €1.7 billion, in order to spread out the burden in an even and fair manner while minimising the impact on low-income families and citizens," said Prime Minister Iveta Radicova (SDKU-DS) after the session, at the same time expressing her belief that legislators will back the measures.
In line with the leaders' agreement, health care contributions should be paid from dividends, while on the other hand the original proposal to levy tax on contributions paid into the voluntary, third pillar of the pension system was dropped. In addition, the tax on beer is to be increased by 22 and 27 percent, rather than 49 percent as originally planned. The 22-percent increase will apply to small breweries, while the 27-percent hike will concern larger ones.
According to the premier, more funds will flow into family policies, while the Coalition is advocating a rise in maternity benefits as well as an extension of the period during which mothers are eligible to receive them.
Meanwhile, health care levies that the state pays on behalf of certain groups of people will drop to 4.32 percent of Slovakia's average salary. In overall terms, however, the health care sector will receive 2.1 percent more funding than in 2010, said Radicova.
Finance Minister Ivan Miklos (SDKU-DS) gave assurances that the changes to the budget proposal won't translate into a hike in the projected public-finance deficit for next year (4.9 percent of GDP).
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