As the former finance minister began, the government of Prime Minister Eduard Heger approved the public administration budget for 2022-2024 at a truly daunting deadline – the day before the deadline for submission to the National Council. Namely, the law on the state budget must be submitted to parliament by October 15, and the government discussed this proposal on Thursday, October 14.
Archive VIDEO The condition for the approval of an extra package in the amount of half a billion euros is the approval of three constitutional changes, said Matovič
“The reason for almost not meeting the deadline was allegedly COVID-19. Of course, the estimation of the basic parameters of the budget (GDP, unemployment rate and level of inflation, but also tax revenues, etc.) was more complicated than if there were no covid, but there were more factors of the government’s late negotiations., “ Schmögner began in her blog. She added that one of the reasons was that Matovič announced tax reform in March, and if it were to apply next year, they would have to incorporate it into the draft budget.
However, as the former Minister of Finance stated, this reform is not yet up to date for 2022 and will therefore not take effect. “We didn’t know its details, but what we did know is enough to say, thank God, “ stated. Matovič wants to introduce a 200-euro supplement for a child in his tax-tax reform until he reaches adulthood, simplify the tax-levy system so that, in the case of an employment relationship, only one tax and one levy can be deducted from the price of labor, or introduce fair taxes.
However, she also criticized the Minister of Finance for another issue – at a press conference, where they confirmed with the Prime Minister that the budget had been approved, he put on former governments. Schmögner’s words to Matovič were reminiscent of the election campaign, however, the date of the parliamentary elections is still the music of the future – they should not take place until 2024. “We heard from Igor Matovič about the Klondike of the former governments, the corrupt and the organized mafia group, as if the election campaign had not yet ended or a new one had already begun,” the ex-minister pointed out.
She also pointed to the words of the prime minister, who claimed that while this year’s budget was a budget of truth, salvation and responsibility, next year’s budget would be a budget of responsibility, stability and development. The budget allegedly got its name because the general government deficit is much lower than previously assumed – instead of almost 8 percent, less than five percent is expected.
“If we deduct from the deficit in the coming year the impact of financing measures against the pandemic at the level of 1.99% of GDP, reducing the deficit by only one point proves “analysts” that it is not so responsible. Their vision of reducing the deficit is much more radical, no matter what the consequences,“Schmögner said. He especially criticizes Matovič’s idea to send less money to the necessary ministries, such as health or education. According to the ex-minister, this is not stabilizing for the mentioned ministries, on the contrary. According to the politician, it is striking that Matovič does not know how health care is financed.
“Later this year, Igor Matovic (OĽaNO) wants to tie payments for state policyholders by 232 million, which he will “pay” if necessary. In other words, as if contracts with hospitals and outpatient doctors were to be concluded by the Ministry of Finance of the Slovak Republic, and not by health insurance companies. A further reduction in state payments for its policyholders (children, students, pensioners and maternity parents) is proposed for 2022 to 2024. In 2022, this is to be 1.1 billion euros, compared to the budgeted 1.43 billion for 2021. ” Schmögnerová pointed out, adding that Matovič is reducing state payments despite known facts. These should be, in particular, the fact that the monthly costs of treatment of state policyholders are 85 euros, Matovič wants to divide them into 31 euros per month. For our neighbors, it is 77 euros.
Source: getttyimages.com
The politician also pointed out that the more the health care is underfunded, the more debts it will generate, which is allegedly confirmed by the repeated debt relief of hospitals. “Does it really create a ‘stabilizing’ environment for healthcare delivery? Development in 2022 and beyond is to be ensured in particular by expenditure covered by the EU Structural Funds and the Recovery Plan. Capital expenditures financed from domestic funds represent only 20%. Even more important than insufficient domestic funding for development is their direction. “ said the ex-minister, noting that defense will be among the government’s priorities next year.
At least, it looks like the draft budget, as the department’s expenditures are budgeted at 1.76 percent of GDP, in 2024 it should even be up to 2 percent. At the same time, Schmögner pointed out how much money the surrounding states are pouring into the defense – despite NATO’s commitments. In 2019, Slovakia spent 1.74 percent on defense, the Czech Republic 1.19, Slovenia 1.04, Spain 0.92 and Luxembourg only 0.56 percent of GDP.
In addition, he sharply criticizes Matovič for his words and threats for the three largest reforms in public finances – expenditure ceilings, the debt brake and the pension reform. “The method he used to do this is called blackmail in colloquial speech. Unless the coalition proposes these three “biggest reforms in public finances”, it will deprive the ministries of almost € 700 million and reduce the deficit from 4.9% of GDP to 4.3% of GDP. I guess the Constitution of the Slovak Republic still applies, according to which Article 119 states that the laws are decided by the government in the church – and not by one minister. “ the ex-minister pointed out the conclusion.
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