The government plans to reduce the deficit by €2.7 billion, with most of the burden falling on workers through lower net wages and on local governments through budget constraints. According to experts, will the proposed measures ensure the long-term sustainability of public finances, and how might they affect economic growth?

The government plans to reduce the deficit by €2.7 billion, with most of the burden falling on workers through lower net wages and on local governments through budget constraints. According to experts, will the proposed measures ensure the long-term sustainability of public finances, and how might they affect economic growth?

“This consolidation package once again targeted the ‘traditional’ taxpayers: it relies mainly on taxing employees and consumption, and on tightening the budgets of municipalities – those who already face financial strain. Meanwhile, the potential of property taxes remains untapped: they are instruments with less negative impact on growth. From both an economic and societal perspective, it makes sense to gradually shift the burden from labor to property,” says Martin Kahanec, professor of economics and co-founder of the Central European Labour Studies Institute (CELSI).

🔗 Read the full response (in Slovak) from Martin Kahanec and other economists here: https://e.dennikn.sk/4840786/panel-expertov-o-konsolidacii-bude-to-boliet-ale-nebude-to-liecit/