Finance minister defends government’s fiscal strategy

Finance Minister Miroslav Kalousek on Tuesday defended the government’s fiscal strategy saying that to artificially boost the GDP would in the long run be three times more expensive and a great deal more harmful than the effects of the government’s consolidation plan. The finance minister said it would be misleading to judge the state of the economy on the grounds of one macro-economic indicator –GDP growth. Despite defending its austerity package the government has responded to the worsening state of the economy with a promise to reduce the deficit in public finances at a slower pace than gradually planned.