BRATISLAVA, March 1, (WEBNOVINY) – After the first two months of this year, the deficit of the state budget shrank by half from the same period a year ago. According to data published by the Finance Ministry the state budget gap reached EUR 344.1 million at the end of February, down 55.9 percent y/y. Behind this development was a 20.3-percent y/y increase in total revenues to EUR 1.758 billion and also a y/y drop in total expenditures by 6.2 percent to EUR 2.102 billion.
The y/y increase in revenues of the state was supported mainly by growth of tax revenues and a considerable increase in revenues from the EU budget. Tax revenues of the state administration amounted to EUR 1.242 billion for two months of this year, up 9.8 percent y/y. VAT collection grew 11.5 percent y/y to EUR 707.8 million while collection of excise tax surged 8.4 percent to almost EUR 339 million. Revenues form income tax of corporate entities went up 3 percent to EUR 192.8 million. Collection of withholding tax worsened by 12.7 percent to EUR 36.3 million. Personal income tax collection, which within the fiscal decentralization ends up almost entirely in the budgets of the municipalities, was minus EUR 41.3 million at the end of February.
Non-tax revenues were lower compared with the same period of last year when they dropped 10.9 percent to EUR 79.9 million. On contrary, grants and transfers posted a significant increase of 81.6 percent to EUR 436.2 million, with finances provided to Slovakia by the EU going up 82.6 percent to EUR 433.8 million.
On the side of spending after two months, current expenditures shrank 6 percent y/y to EUR 1.983 billion. Capital expenditures dropped 10.5 percent to EUR 119.5 million.
According to the state budget law adopted by parliament, the state budget should have EUR 13.148 billion in revenues 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 GDP.
SITA
