The Government plans to draw less money from taxpayers next year, while also planning to spend less. On Wednesday, the Finance Ministry has published the draft of state budget for 2018. Based on this proposal, the state revenues should be almost 14 billion euros, while expenditures should reach almost 16 billion. However, the ministry wants to gradually lower the deficit all the way to a balanced budget in 2020. Compared to this year, defence will be gaining the most, while the biggest cuts will come in transport.
The finance minister Peter Kažimír expects a financially strong year. The economy should grow at a rate of 4%, mainly thanks to new investments in car production and car export. The employment rate should rise by 1.4% and real incomes are expected to rise too, by almost 3%. According to Kažimír, the budget also takes into account Government priorities such as for example, the increase in the minimum wage, support for those commuting to work, an increase in bonuses for night and weekend work, as well as voluntary pay-out of the thirteenth and fourteenth salaries.
"We've set budgetary targets that are achievable while also confirming the credibility of our public finance on its way towards a balanced budget," stated Finance Ministry's spokesperson, Alexandra Gogová. On the other hand, analysts think that since the economy is doing so well, the cuts could have been bigger. The Government is due to discuss the public administration deficit draft next Wednesday (October 11). Subsequently, it will be submitted to Parliament within the deadline set by law.
