Coalition proposed pro-family reform but does not have enough votes in parliament
The government presented compensation for high energy and food prices, aiming to spend €260m this year and over €1bn in 2023. Rather than compensation, though, this is a pro-family reform. The government will pay a one-off €100 allowance to children and low-income households (€115m), but most of the money will fund permanent increase in social benefits. A child allowance will increase from the current €26 to €30 from July and to €40 from January 2023. The tax bonus per child will increase from €24-47 to €50-100. The state will pay €60 per month for children's extra-curricular activities.
Sources of funding will be presented later. Finance Minister Igor Matovič (OĽaNO) says the compensation will be paid by higher taxes on the 100 largest companies. (forbes.sk)
The SaS coalition party does not agree with the proposed largesse, saying that it is "not means-tested, expensive, and inefficient." SaS will oppose any tax hikes. The remaining three coalition parties don’t have enough votes in parliament to push through the measures, and talks on them will continue. Matovič has been suggesting €200 a month per child as part of his tax reform, but the coalition rejected this.
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