Monitor: Sakova: Budget Will Take People and Living Standards into Account

(TA3,'V politike', 21 June) Along with the rest of the governing coalition, the Voice-SD party guarantees that next year's state budget will take people and their standard of living into account, Economy Minister and Voice-SD vice-chair Denisa Sakova said on TA3's discussion programme 'V politike' (In Politics) on Sunday, adding that talks on the draft budget are expected to take some time. The details concerning the budget and related measures will be disclosed only after the coalition reaches an agreement, she noted. "We won't accept any measures that would reduce the living standard of the people," she stressed, noting that when preparing the budget, the government will focus on both revenue and expenditure measures. According to her, Voice-SD will insist on preserving all social benefits, such as the 13th pension payment, support for mothers with children and increases in the minimum wage. "As economy minister, I can say that I will insist on measures to mitigate the impact of high energy prices," stressed Sakova, noting that the coalition will also get back to the package of pro-growth measures. When preparing the budget, she said they will also discuss changes in taxes and levies with the Finance Ministry, as it has the necessary tools. Also on the show, opposition Freedom and Solidarity (SaS) party vice-chair and MP Marian Viskupic argued that the current social policy and the functioning of the state are unsustainable. According to him, government representatives are not telling the truth because people's living standards have declined under this government. "People are paying higher taxes, many have lost their jobs and many are paying new taxes," he said. Viskupic also criticised Sakova for failing to provide any specific information about next year's budget and related measures. He pointed out that the government had softened its own fiscal consolidation targets, meaning that next year's deficit is no longer expected to fall to 3 percent of GDP, but only to 4.2 percent. According to Viskupic, the state needs substantial spending cuts, including a 10-percent reduction in the state workforce. He also believes the economy could be quickly stimulated through major tax reforms, such as by scrapping the transaction tax, cleaning up the value-added tax (VAT) system and reducing income taxes. jrg