Government Approves Package of Measures to Consolidate Public Finances

Bratislava, September 18 (TASR) - The government included most of the measures to consolidate public finances next year in a single legislative package. At its session on Wednesday, it approved with comments the bill amending some laws in connection with the further improvement of the condition of public finances. It passed the bill on tax on financial transactions with comments, too, suggesting that Parliament should deal with both laws via fast-track legislative proceedings. The documents themselves haven't yet been published. Finance Minister Ladislav Kamenicky (Smer-SD) should inform the media about comments to them, which can significantly modify the original proposal, after the government session. Premier and Smer-SD leader Robert Fico on Tuesday (September 17) announced that the governing coalition agreed to pass a package of measures to consolidate €2.6-2.7 billion in public finances and thus squeeze down the next year's deficit to 4.7 percent of GDP. As part of the consolidation, VAT will increase to 23 percent, although VAT on basic foodstuffs is to be reduced to 5 percent and the tax on financial transactions for businesses is to be introduced as well as increased income taxes for businesses with profits exceeding a certain level. ko/mcs