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Ministry of finance published Slovak Program of stability for years 2011 – 2014 [in Slovak], in which it presents program of consolidation of public finance. Main goals of the Program of stability are:
2011 |
2012 |
2013 | |
---|---|---|---|
Deficit of public finance as a % of GDP |
-4.9% |
-3.8% |
-2.9% |
Source: MoF SR, 2011
2009 |
2010 |
2011 |
2012 |
2013 |
2014 |
|
---|---|---|---|---|---|---|
Gross debt of public finance as a % of GDP |
35.4% |
41.0% |
44.1% |
45.3% |
45.3% |
45.2% |
Source: MoF SR, 2011
Ministry of finance plans to perform the consolidation of public finance by three types of measures:
Previous government provided in December of 2009 to hospitals from state financial assets refundable financial help (RFH) in the amount of 130 mil. €, from which 109 mil. € went to state hospitals.
In January 2010 we wrote, that providing RFH from state assets enables to camouflage the deficit of public finance and that the real deficit will be calculated to the balance of that government, which will admit that RFH provided to hospitals are uncollectible and will reclassify them to net expenditure, which will be by ESA95 calculated to the deficit. By this technique of debt relief via RFH could Fico’s government save hospitals before election without admitting it in the budget.
Current government correctly reclassified refundable financial help (RFH) provided to hospitals to non-refundable financial help (non-RFH) and again correctly calculated it not to the deficit of 2011, but to the deficit of 2009, that means to the year, when the RFH was provided. The difference in perception documents Chart 1. Blue curve of the debt is preferred by Ministry of Health of Slovak republic (MoH SR) (and occurs not only in documents of previous, but also the current management), while correct should be the red curve of debt, which in the amount of debt calculates also the volume of provided refundable financial help in 2009. That’s why is the view of MoF SR, to calculate the provided RFH in 2009 to deficit of 2009 correct.
Source: Calculations of HPI on the basis of data of MoH SR, 2011
Similar as non-RFH (non-refundable financial help) provided in 2009 MoF SR calculated to 2009, it also very correctly calculated to the deficit of 2010 unprofitable mangement of hospitals in the amount of 79,3 mil. € (0,1% of GDP) for 2010. MoF SR warns, that unsufficient measures in the past lead in these companies (besides hospitals it were also the railways) to their unprofitable management, which the government has to finance today.
Ministry of finance in the area of health care identified as important these measures:
We realize the restricted space of that kind of document and that’s why we understand the fact, that Ministry of Health of Slovak republic was not able to enumerate all tools of health care policy designed for stabilisation of public finance.
Program of stability should in our opinion not lack these essential measures:
Liabilities |
Amount |
Data source |
---|---|---|
Liabilities after maturity (principal) of health care facilities in the scope of MoH SR to Dec 31, 2010 |
209 mil. € |
Report about development of debts in the health care resort |
Estimated growth of liabilities after maturity (principal) of health care facilities in the scope of MoH SR in 2011 |
100 mil. € |
Estimation of HPI |
Estimated volume of liabilities in the maturity period, which are not classiefied as debt, but it will be necessary to pay them during transformation |
150 to 200 mil. € |
Estimation of HPI |
The whole amount needed for debt relief |
459 to 509 mil. € |