Bozik: Middle East Conflict Will Also Strain Local Government Budgets

Bratislava, 23 March (TASR) - Local governments in Slovakia are also being affected by the conflict in the Middle East, as it's contributing, via rising fuel and gas prices, to an increase in the cost of goods and services for towns and cities, Slovak Towns and Villages Association (ZMOS) chair Jozef Bozik told TASR on Monday. "Local governments rely on goods and services that are partly determined by imports. Transport costs are driving inflation, as haulers have to pay for more expensive diesel or petrol. All of this has an impact on the budgets of towns and villages," outlined Bozik. Municipal budgets could also be hit significantly by heating costs due to higher gas prices unless municipalities have fixed contracts for a year or two. Even though the upcoming period won't require so much heating, an increase in gas prices, such as in bread production, could be reflected in end prices, added Bozik. "These price hikes will also have an impact on the level of overhead costs for providing meals to our children in nursery schools and primary schools, or to clients in social facilities," he explained, adding that inflation will be Europe-wide and global, and Slovakia won't be left out. Consequently, municipal budgets will face higher costs as well. "I daren't forecast the exact amount. Just as consolidation adversely affects municipal budgets, the unstable developments and military conflict in the Middle East will have an equally negative impact," he stated, adding that the war could shake Slovakia and the entire world. Local governments will have to respond to these unfavourable developments through additional measures. "They are already cutting down on costs and will have do so even more," declared Bozik. In this connection, he pointed out that local governments can't change the fees for municipal waste collection during the year. jrg/df