BRATISLAVA, November 2, (WEBNOVINY) – After the first ten months of this year, the state budget gap of the Slovak Republic continues to be almost one-third lower than last year. According to data from the Ministry of Finance, the state budget deficit reached EUR 2.341 billion in late September, down 30.6 percent y/y. In October alone, the deficit widened by over EUR 180 million. Decisive for the overall result of the state budget this year will be the end of the year, when the deficit usually grows the most. The state budget gap is projected to reach EUR 3.81 billion this year.
Total budget revenue grew 9.9 percent y/y to EUR 9.311 billion, which is 70.8 percent of the annual projection. Total expenditures of the state administration moderately decreased, going down 1.6 percent to EUR 11.653 billion. As of late October, the state spent 68.7 percent of the total expenditures projected for this year.
Tax revenue, which makes up a better portion of the state’s revenue, grew 9.4 percent y/y to EUR 7.077 billion, which represented over 80 percent of the overall plan. Corporate income tax revenue developed most positively, rising 43.6 percent y/y to EUR 1.379 billion. The collection of value-added tax amounted to EUR 3.827 billion, an increase of 4.1 percent y/y. Excise tax revenue went up 2.9 percent y/y, too, to be at EUR 1.66 billion.
On the other hand, revenue from withholding tax declined 9.2 percent to EUR 118.8 million. Personal income tax revenue, which is almost fully transferred to budgets of self-governments within fiscal decentralization reached EUR 39.7 million in late October, down 36.2 percent y/y.
Non-tax revenue of the state budget soared by 11.9 percent to EUR 666.6 million, already meeting the projections to 95 percent. 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 11.4 percent to EUR 1.567 billion. Thereof transfers from the EU swelled 51 percent y/y to EUR 1.533 billion. The state’s ambitions were, however, higher, as in spite of the growth, transfers from the EU reached only 45.8 percent of annual projections.
Current expenditures dropped 1.2 percent y/y to EUR 10.15 billion. Capital expenditures decreased by 4.7 percent to EUR 1.503 billion. Current expenditures were drawn to 72.2 percent and capital expenditures to 52 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 originally planned to squeeze the deficit bellow 3 percent of GDP in 2013. Following the government’s fall, the Finance Ministry said the general government’s deficit next year would overstep the initially planned 3.8 percent of GDP, which would also postpone the ambition to squeeze the deficit below 3 percent in 2013.
SITA
