Bloomberg News

Slovak Cabinet Approves 2012 Budget Draft With Lower Deficit

October 12, 2011

(Updates with parliament backing in second paragraph, euro-bailout vote in third, Fico in fourth, growth in fifth.)

Oct. 12 (Bloomberg) -- Slovakia’s government, which lost a no-confidence vote yesterday, approved the 2012 budget draft that targets a deficit of 3.8 percent of gross domestic product, Deputy Premier Jan Figel said.

The Cabinet will submit the spending plan to parliament, where its support is uncertain after a rift in the coalition led to the government’s collapse yesterday, Figel told journalists today in the capital, Bratislava.

Prime Minsiter Iveta Radicova’s government fell after Freedom and Solidarity, a junior ruling party, didn’t back an overhaul of the European bailout mechanism, to which the no- confidence motion was tied. Figel urged deputies of the rebel party, known as SaS, to back the budget.

Smer, the largest opposition party, will continue to oppose legislation submitted by the government even after striking an agreement with Radicova’s party on early elections in March, Robert Fico, the party chairman, said today.

The budget, which cuts the deficit from a projected 4.9 percent of GDP this year, is based on an assumption of a 3.4 percent economic growth. Finance Minister Ivan Miklos has said the ministry will revise its economic forecasts next month and will adjust the budget if necessary to keep the deficit goal.

--Editors: Balazs Penz, Leon Mangasarian

To contact the reporters on this story: Radoslav Tomek in Bratislava at rtomek@bloomberg.net; Peter Laca in Bratislava at placa@bloomberg.net

To contact the editor responsible for this story: Peter Laca at placa@bloomberg.net


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