Opposition Blasts Coalition Budget Deal and Preservation of Transaction Tax

Bratislava, 2 October (TASR) - Opposition parties PS, SaS and 'Slovakia' criticise the coalition agreement on the draft state budget for next year, which envisages a deficit of 4.94 percent of GDP, lambasting in particular the decision to keep the transaction tax in place until 2028 and the lack of savings measures on the state side. The opposition parties accuse the government of preparing an election-oriented budget at the expense of the people and businesses. PS chair Michal Simecka described the decision to retain the transaction tax as another devastating piece of news. "This is another devastating piece of news for the Slovak economy and businesses, together with the fact that the government plans a deficit of almost 5 percent of GDP. They do not know how to govern and are leading us towards bankruptcy. They should step aside; people in Slovakia really deserve a better government than this dysfunctional coalition," he stated. According to SaS, postponing the abolition of the transaction tax until January 2028 is a mockery of the business sector, which will have to pay the tax for another 15 months, generating approximately €500 million in revenue. SaS chair Branislav Groehling said that instead of making savings, the government was preparing an election-oriented budget aimed at satisfying the demands of individual MPs. SaS vice-chair Marian Viskupic added that the government was failing to comply with the Fiscal Responsibility Act, under which it should have submitted a balanced budget. "It's not even keeping its own promises, when it said it would submit a budget with a deficit of 3 percent. It's not in any dialogue with the social partners at all," he warned. The 'Slovakia' party also voiced criticism, with MP Julius Jakab underlining that the Cabinet has abandoned any savings measures and planned to increase borrowing to an unprecedented level while paying high interest rates. He warned that the government's tenure will result in an increase in debt of €27 billion, which might worsen Slovakia's credit ratings and lead the country down what he called the "Greek path". Earlier on Friday, the coalition agreed on a state budget with a deficit of 4.94 percent of GDP, without increasing taxes or levies. According to Finance Minister Ladislav Kamenicky (Smer-SD), the agreement is a compromise that complies with European Commission rules. The agreement with SNS also includes the abolition of the transaction tax from 2028; until then, its revenues are needed to cover budget priorities. mf