Miklos pessimistic about public finance deficit

Finance Minister Ivan Miklos has spoken out that the planned deficit of 5.5% of the GDP in 2010 is pretty unfeasible, saying: “the projected deficit is a mere illusion”.

Following the government sessions today, 14 July, he questioned the comments made earlier by former finance minister Jan Pociatek, who claimed that the original figure was attainable.

The main reason why the plan will not be reached is that levied taxes are already EUR 1 billion lower than estimated at the time this year’s budget was compiled.

Miklos explained that “EUR 1 billion is roughly 1.5 percent of the GDP, which means a 7-percent deficit, not a 5.5 percent one”. What’s more, other issues are coming into play, like additional expenditure to help the flood-stricken towns and villages, which are already suffering from a severe lack of cash.

Miklos also mentioned how the unfavourable contracts signed by the former government had put a strain on public finances: “We will analyse and make all these issues public. We will expose all the contracts that were signed with the state or public institutions”.

Miklos is also not optimistic that public finances will be resuscitated before next year’s budget.

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