Negatives prevail over positives in the presented government social package, and it largely contains populist proposals, the Slovak Business Alliance (PAS) stated, calling for the scrapping of 13th pension payments as well as free transport, and for the introduction of a reform of taxes and levies.
The PAS is convinced that the package distributes public resources across the board to richer people who are not dependent on state aid, or to pensioners whose income has not been affected by the crisis. All this so far without detailed calculations of the impact on public finances and without a credible explanation of how and from where the state will pay for the measures. The PAS further stated that in times of crisis the economy needs to be helped as soon as possible by one-off measures targeted at the most affected or through investments with the highest value for money. "Instead, the package brings lasting measures that will only come into force after the worst effects of the crisis have subsided. It will therefore burden public finances at a time when it is necessary to reduce the public finance deficit," PAS director Peter Serina said in a statement.
According to him, it is not clear how the Government will recompense local government, which will bear a significant part of the revenue shortfall. Of the individual measures, we consider the least effective a significant increase in Christmas pension contributions, which the coalition renames as 13th pension payments, as well as free transport on buses, public transport and trains for children, pupils, students, pensioners and wheelchair users. The Government should scrap the financially uncovered 13th pension payments," stated Serina.
According to PAS, the positives of the package include an increase in the tax bonus for children, which will help families with working parents and reduce the risk of poverty for families with several children. "Compared to the current legislation, there is also a benefit in reducing the 13th pension payment, which was approved just before the parliamentary election without any coverage in the state budget," Serina.
