Kamenicky: Budget to be Adjusted in Parliament, Target Deficit Not to Change (2)

Bratislava, October 15 (TASR) - The next year's budget was approved by the government on Tuesday without an extensive debate, although two issue still remain open: the aid with energy prices and money for health sector, which will both need to be taken into account during the parliamentary vote on the budget, but not at the expense of the target deficit of 4.7 percent of GDP, which must be met no matter what, Finance Minister Ladislav Kamenicky (Smer-SD) declared after a session of the government on the same day. "I reject any speculations on whether or not the consolidation is going to be carried out. We are consolidating, that's a necessity that we, unfortunately, must do, as we've inherited the worst budget within the EU and we must address that," underlined Kamenicky. If the consolidation weren't to take place, the public debt of Slovakia would swell in the following years to 66 percent of GDP. "I dare to say openly that if the debt were to increase that steeply, we would find ourselves in a situation in which Slovakia might have problems with selling its bonds and could even find itself in a state of bankruptcy," he warned. Kamenicky added that the House vote on the 2025 budget should be held traditionally in late November/early December. "Until then, all legislative changes must be allowed to run their course and other things, such as the health sector and energy aid, must be tackled as well," he claimed. In these areas it is still necessary to arrive at a compromise agreement and find money for them within the budget. "I rule out debate on changing the target deficit, set for 4.7 percent [of GDP] in 2025, that's a fixed value for me," accentuated the Finance Minister. As of mid-January, the Finance Ministry will start drafting another consolidation package of measures. Even though there are some specific plans in the pipes, Kamenicky didn't want to reveal them yet. One of the options, however, is to increase the tax on gambling. The public deficit is slated to drop to 4.7 percent of GDP in 2025, 3.7 percent of GDP in 2026 and 3 percent of GDP in 2027, according to the 2025-27 public administration report approved by the government on Tuesday. mf/mcs