Government Session on Basis for Draft Budget Memorandum
The Government has approved guidelines for a draft budget memorandum for 2006-2010, which will form the basis for preparing the draft 2006-2007 national budget.
The finance minister, Andrej Bajuk said after the session that the budget deficit could not exceed 1.4% of GDP in 2006, and 1.2% in 2007. Together with the Institute of Macroeconomic Analysis and Development, the Ministry of Finance will prepare the draft budget memorandum by the next budget session on 21 July, and will also coordinate cuts in budget spending with other ministries. Mr Bajuk said the guidelines adopted by the Government were in line with macroeconomic policy and the euro adoption plan, and also fulfilled the ruling coalition's commitment to reduce public spending. The plan is to cut spending to 26.4% of GDP in 2006 and to 26.1% of GDP in 2007. On the subject of tax law reforms Mr Bajuk said the amendments were not yet finished but that intense work was going on between the Ministry of Finance and the people preparing the reform to coordinate the process. He predicted the proposed changes would come before the National Assembly before the end of the year and possibly in early autumn.
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