BRATISLAVA, January 18, (WEBNOVINY) — The Ministry of Finance will try to push forward a legal cap on public debt to be enacted through a constitutional law. According to Finance Minister Ivan Miklos, the government wants to adopt tougher institutional and legislative rules against growing indebtedness and will also hold talks with the opposition in order to get its support. The minister went on to say that they will propose in a draft constitutional bill a certain level, certainly lower than 60 percent of GDP, which should under no circumstances be overstepped. The minister further told the press on Tuesday that it would be ideal to define the upper limit to the public debt in a constitutional law. If this attempt fails, the ministry will propose a “simple” bill that will deal the cap on public debt.
The opposition’s support for such constitutional restriction of the public debt remains open for the time being. Former finance minister and current deputy for the opposition SMER-SD party Jan Pociatek told SITA news agency that it is a broad topic that would require a number of changes to fiscal rules. “We are willing to debate it, and we also have our proposals,” he said. Pociatek went on to say that if the coalition’s opinions regarding reform of fiscal rules meet with theirs, they would be willing to support the changes. Nonetheless, an agreement would have to be sought also in the system of operation of the fiscal council, which would oversee the fiscal policy as an independent body.
Ivan Miklos announced a plan to set up a fiscal council, too. Its role should be overseeing transparency and effectiveness of using public sources. He added that tougher rules regarding the public debt, effective use of public funds, and respecting budgetary rules will also apply to self-governments.
One of the measures that the ministry wants to focus on this year is reduction of tax evasions “In 2011, we want to concentrate on systemic changes, too, on changes that will restart the economy,” said Miklos.
SITA