Kamenicky: Consolidation Will Include 22 Measures Worth €2.7 billion

        Bratislava, 9 September (TASR) - The package of consolidation measures for next year will include 22 measures totalling €2.7 billion, Finance Minister Ladislav Kamenicky (Smer-SD) announced on Tuesday, adding that almost half of the amount, €1.3 billion, should be obtained by savings on state spending.
        The result should be a reduction in the general government deficit and a gradual stabilisation of public debt.
        The state should save €1.14 billion, for example, by reducing spending on goods and services, scrapping and merging some offices, but also by substantially reducing spending on salaries. Local authorities should also save, as their share of income tax will be reduced by €130 million. The state will also save money if it is possible to finance aid with energy prices from EU funds.
        Most of the additional revenue is to be brought into state coffers by a 1-percent increase in the employee health-care levy, namely €358 million. The progressive nature of tax on individuals is to be increased, with the two existing rates of 19 percent and 25 percent to be expanded to include two more of 30 percent and 35 percent. Constitutional officials will have these rates increased by a further 10 percent. According to the minister, the state intends to raise more than €200 million in total from this measure.        
        Value-added tax (VAT) on selected foods with increased sugar or salt content will increase from 19 percent to 23 percent, which is expected to channel over €90 million into the budget. Kamenicky plans to raise €54 million from an increase in gambling tax.
        There will also be a change in public holidays, with the public holiday on 17 November to be cancelled permanently and 6 January and 8 May on a temporary basis. The ban on sales on public holidays is also to be lifted. According to the finance minister, the state should obtain a total of €230 million from this measure.
        Kamenicky also expects additional revenues from combating tax evasion. A general pardon on penalties for taxes paid in arrears is anticipated to bring in €81 million. The state wants to gain €86 million from limiting the VAT deduction on company cars that are also used for private purposes, while shortening the tax holiday for sole traders from 12 to six months is expected to bring in €119 million.
        "For me, this has been the most difficult consolidation package of all the ones I've delivered. Of course, the measures are shrinking in number, it's getting harder and harder. This time, half of the amount is to be cut from state expenditures, and I thank the ministers for taking this on, for communicating with me and going for it," said Kamenicky, adding that he'd like to have an agreement on savings at all ministries by the end of this week.
        The finance minister noted that the government has also made savings in the past, but this time it is a "huge amount", with the vast majority of spending being mandatory. "If some ministers want to make savings at their ministries and they have a sum that they can't save from laying people off, for example, they'll have to make changes to laws," he stated, adding that the consolidation package itself should come to Parliament as a single legislative proposal via a fast-tracked legislative procedure at the current session.