New Slovak government eyes tax, spending hikes, slow deficit reduction
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Slovakia’s new government plans to raise multiple taxes, including on banks, to fund pension and other spending rises and slowly cut the euro zone’s highest budget deficit under a programme approved by the cabinet on Monday.
Leftist Robert Fico became prime minister for the fourth time last month after winning an election in which he took aim at critical media, Western partners and liberal policies and pledged to end military support for Ukraine.Fico, who has formed a coalition with smaller leftist and nationalist parties, plans to present the programme to parliament on Tuesday for a confidence vote in his government.The programme promised a special tax on banking profits and measures to cut interest rates on mortgages. Special levies will be designed for excessive profits in other unspecified sectors.The programme also set out plans for increasing tax levels for higher earners, on real estate — especially second and third homes — and on alcohol and tobacco. The government will also consider a tax on sweetened drinks.The goal is to help fund a slow consolidation of the public budget as the budget gap is expected to be nearly 7% of gross domestic product.
