SaS Presents Recovery Plan for Economy, Wants to Push Deficit below 3% of GDP

Bratislava, 29 October (TASR) - The high state-budget deficit should be brought down below 3 percent of GDP by the end of the next four-year electoral term, according to a recovery plan for the Slovak economy presented by the opposition Freedom and Solidarity (SaS) party on Thursday. The consolidation of public finances and reduction of debt should be based on three pillars: kick-starting the economy, making substantial savings on the part of the state and scrapping non-targeted benefits. SaS leader Branislav Groehling stressed that fiscal consolidation mustn't come at the expense of the public. "Our priority is a thriving economy, our priority is low taxes, and our priority is to ensure that people, employees and families have more money in their pockets," said Groehling. SaS vice-chair Ludovit Paulis presented a timetable for key measures. In the first year, the party wants to introduce a flat 19-percent income-tax rate for both employees and businesses, to simplify value-added tax (VAT) rates and to adjust social levies for the self-employed based on their actual incomes. In the second year, it plans to follow up with a reform of social levies and the introduction of levy caps. The cost-cutting plan also includes a significant reduction in red tape in the second year in power, which entails eliminating redundant administrative functions and state offices, alongside the reassignment or dismissal of their staff. "The state can't afford to pay its current number of employees. The way to do this is to eliminate nonsensical agendas, and, consequently, the nonsensical bureaucracy that goes with them, which renders the office in question redundant. As a result, we'll save money by no longer having to pay for something that ultimately doesn't help the country at all, but harms it instead," said SaS vice-chair Marian Viskupic. According to him, a comprehensive public administration reform, combined with making it more efficient, could save the state at least €1-2 billion a year. According to SaS, another pillar of cost-cutting should be the scrapping of blanket, non-targeted social benefits, what Viskupic called 'false solidarity'. The party advocates replacing these with targeted aid, directed towards those who actually need it, rather than being provided automatically to everyone regardless of their incomes. The changes would also affect 13th pensions, energy aid, which SaS proposes replacing with a housing allowance, and free school lunches for children. ko/df