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Fico: New Gov't Will Be Forced to Cut Public Expenditures Further
Tuesday 23 March 2010 Zoom in | Print page
Bratislava, March 23 (TASR) - The new government that will be formed following the elections on June 12 will be forced into further cuts in state expenditures with a view to the consolidation of public finances, said Premier Robert Fico after meeting representatives of the American Chamber of Commerce on Tuesday.
Slovakia, partly due to the economic crisis, recorded a public deficit of 6.3 percent of GDP last year, which is more than double the 3-percent ceiling allowed by the Maastricht criteria. This year, the Cabinet intends to reduce the deficit to 5.5 percent, and it should return within eurozone limits by 2012.
"You know my stance - wherever there may be cuts, no cuts will take place in the social sphere. It's a condition with which we'll enter the next government if the voters give us this opportunity," said Fico.
The premier stressed that there is an "absolute presumption" that Slovakia will record positive economic growth this year. He didn't provide any further details, however. He described the latest prognosis by the Finance Ministry of 2.8-percent growth as a starting figure and an average of various assessments that differ significantly.
Regarding possible changes that could be carried out by the next government, Fico emphasised that nobody wants to speculate with the Labour Code, which now has a standard shape. Neither is anybody interested in "playing" with taxes. The tax system should remain untouched, at least when it comes to companies' incomes.
"Maybe we'll talk about progressiveness in taxing private individuals. We also want greater stability in legal prescriptions," said Fico.
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