The distribution of the additional tax of the company U.S.Steel is transparent and according to law

Last update: 03.08.2005 06:00

3rd August 2005

The Ministry of Finance of the Slovak Republic denies allegations of political clientelism in connection with the distribution of additional tax of the company U.S.Steel.

  Nothing is secret and the entire procedure is in accordance with the rule of law. The Government of the Slovak Republic, nor the Ministry of Finance are hiding anything. The decision of the Government and the whole material are transparently placed on the web site of the Government Office of the Slovak Republic. Anyone who is interested can obtain information on the places, amount of assistance, and also purposes for which the finance will be used.

  This year tax revenues to the state budget were increased by additional resources that were contributed by the company U. S. Steel. On the basis of applying Article 2 of Act No. 740/2004 on the state budget for the year 2005, the state budget expenditure will be adequately increased by the state budget increased revenues to the amount of SKK 400 million.

  On the basis of this, the Government was able during its negotiations to properly approve the application of the funds. The objective is to help cities and municipalities, particularly in the self-governing regions of Košice and Prešov, and to support regional projects. The finances are meant for the solution of extraordinary and urgent assignments, for specific cities and projects.

  The funds will be transferred to cities on the basis of the Decree of the Ministry of Finance of the Slovak Republic from 25th February 2004 No. 2552/2004 – 44 on subsidization within the scope of the Ministry of Finance of the Slovak Republic. Subsidies for special purposes may be provided from the budgetary chapter, which is administered by the Ministry of Finance, and that is to the municipality, a higher territorial unit, or another legal person, for the fulfilment of extraordinary or urgent assignments, and that is on the basis of the decision of the Government of the Slovak Republic.

  Subsidies may be provided to an applicant, if he proves that at least 10% of expenses are secured from other resources. They can not be provided

a) for the payment of obligations from previous years,

b) for reimbursement of expenses paid in previous years,

c) for repayment of a loan or interest from provided loans,

d) to an applicant that does not have financial relations arranged with the state budget,

e) for the payment of wages, salaries, remunerations and its compensations, and other personal settlements. 

Peter Papanek, 
Adviser to the Minister