BRATISLAVA, October 3, (WEBNOVINY) — The state budget gap of the Slovak Republic widened by over EUR 140 million in September. According to data from the Ministry of Finance, the state budget deficit reached EUR 2.159 billion in late September. Over the January-September period. the state budget deficit reached 56.7 percent of the overall budget deficit planned for this year of EUR 3.81 billion. As a rule, the deficit usually grows the most at the end of the year, in particular in December. In a year-on-year comparison, the gap continues to be lower by nearly one-third. Compared with the first nine months of last year, the state budget deficit is lower by 30.6 percent.
Total budget revenue grew 9.8 percent y/y to EUR 8.279 billion, which is 63 percent of the annual projection. Total expenditures of the state administration moderately decreased, going down 2 percent to EUR 10.438 billion. As of late September, the state spent 61.6 percent of the total expenditures projected for this year.
Tax revenue, which makes up a better portion of the state’s revenue, grew 8.3 percent y/y to EUR 6.206 billion. Corporate income tax revenue developed most positively, rising 43.4 percent y/y to EUR 1.257 billion. The collection of value-added tax amounted to EUR 3.279 billion, an increase of 2.3 percent y/y. Excise tax revenue went up 2.3 percent y/y, too, to be at EUR 1.483 billion.
On the other hand, revenue from withholding tax declined 10.7 percent to EUR 109.7 million. Personal income tax revenue, which is almost fully transferred to budgets of self-governments within fiscal decentralization reached EUR 27.7 million in late September, down 43.9 percent y/y.
Non-tax revenue of the state budget soared by nearly EUR 100 million to EUR 626 million, up 18.1 percent y/y. Non-tax revenue comprises revenue from lease of property administered by individual departments, dividends from state-owned companies, administrative and other fees, proceeds from the sale of movable assets and others.
Grants and transfers recorded growth of 13.1 percent to EUR 1.447 billion. Thereof transfers from the EU swelled 52 percent y/y to EUR 1.427 billion. The state’s ambitions were, however, higher, as in spite of the growth, transfers from the EU reached only 42.7 percent of annual projections.
Current expenditures dropped 1.7 percent y/y to EUR 9.093 billion. Capital expenditures decreased by 4.2 percent to EUR 1.345 billion. Current expenditures were drawn to 64.6 percent and capital expenditures to 46.5 percent of the annual plan.
According to the state budget law adopted by parliament, the state budget should have EUR 13.148 billion in revenue and EUR 16.958 billion expenses in 2011. The budget deficit is expected to be EUR 3.81 billion. The deficit of the general government as a whole, considering all public institutions, not only the state, should be 4.9 percent of GDP. The government plans to squeeze the deficit bellow 3 percent of GDP in 2013.
SITA
