Kamenicky: Coalition Agrees on Budget with Deficit at 4.94 percent of GDP

Bratislava, 2 October (TASR) - The Coalition Council has agreed on next year's budget with a deficit of 4.94 percent of gross domestic product (GDP), plus the abolition of the transaction tax as of 2028, Finance Minister Ladislav Kamenicky (Smer-SD) announced after the meeting held at the Government Office on Friday. "I would describe the entire budget as a compromise between what the state coffers can afford and the priorities of the individual coalition parties," said Kamenicky, calling the approach taken by coalition partners constructive. He insists that the current government will hand over public finances in a better condition than they were when it inherited them, with the deficit roughly 1.5 percentage points of GDP lower than at the start of the government's term. According to Kamenicky, the budget complies with all of the European Commission's (EC) fiscal rules. Kamenicky highlighted that neither taxes nor levies will increase next year and that money intended for people will remain untouched. Even though certain cuts have been made at individual ministries, this was done without applying an across-the-board approach, he said. "We've found money for energy assistance next year, and we've also found money for indexing salaries. We've found money for drought measures, as well as for various transport projects," said Kamenicky, adding that he'll present the details of the budget after it's approved by the government. As for the priorities that the individual coalition partners managed to include in the budget, he said that they should present them themselves. According to Kamenicky, the budget parameters must also be acceptable to the financial markets. “We have the confidence of the financial markets and want to preserve it. We'll be handing over a lower deficit than the one we inherited," he stressed. Regarding the transaction tax, Kamenicky praised the agreement reached with the junior coalition Slovak National Party (SNS) to scrap it as of 31 December 2027. "Basically, they want it to be abolished somehow by the end of next year. As I've said, the transaction tax isn't a sacred cow for me, but I have to point out that we simply need these funds next year, given that we had to accommodate various demands from our coalition partners, as well as certain priorities that may come up," stated Kamenicky. jrg/df