Slovakia's new centre-left government said on Friday, Apr. 27, it would raise taxes for companies and the rich to bring down its budget deficit and meet EU targets next year.

Prime Minister Robert Fico's government approved its programme ahead of a May 2 confidence vote in parliament, where he commands a solid majority of 83 seats out of 150.

The cabinet agreed in its programme to bring the budget deficit to below the EU's target of 3 percent of gross domestic product in 2013 from 4.8 percent last year.

This year, the government targets 4.6 percent and must put together a savings plan to hit that goal.

The government said it plans to raise taxes on top earners and companies' profits, but has yet to release details. It will also raise budget revenue from a bank tax that was previously approved by parliament.

"This (year's) deficit will near 5 percent, which means we will likely have to consolidate already this year so that we won't have to consolidate at the maximum next year, which would be quite painful," Fico said.

He said he was hoping to increase the trust of financial markets.

"We are not doing this because of Brussels," he said. "We are doing this for ourselves, so that Slovakia can more easily raise funds on financial markets."

Fico, a 47-year-old Europhile, and his Smer party swept to a landslide victory in a March election, ousting the centre-right government of Iveta Radicova, which had collapsed in October in a row over the beefing up of the euro zone's bailout fund.

It is Fico's second stint as premier after leading the small nation into the euro zone in 2009.

Fico's government aims to speed up preparations for new nuclear power units, according to the programme. It ruled out the privatisation of strategic state companies, and wants higher dividend contribution from state entities.

The government also pledged to improve trade relations with leading emerging market economies, especially Russia.