BRATISLAVA, February 14, (WEBNOVINY) – Slower economic growth than had originally been predicted will translate in a downfall of tens of millions of euros in state budget revenues. According to the updated prognosis of tax and payroll levy revenues, last week’s downgrade of GDP growth estimate from 1.7 percent stated in the budget for this year to 1.1 percent will mean nearly EUR 140 million less in revenues for state coffers. Finance Minister Ivan Miklos says that the impacts are relatively softer than first glance would appear, as behind the slowdown in economic growth is in particular foreign demand.
Minister Miklos claims that the aim remains to reach a maximum deficit of 4.6 percent GDP. A portion of the downfall can be covered by a revision and update of some data. For instance, EUR 12 million could be saved in contributions to the EU budget, further EUR 12 million could be saved on privatization-related expenditures, and non-tax revenues could bring EUR 18 million more than planned. The country may also cut costs related to the state debt, as Slovakia borrows for shorter periods on softer interest rates.
On Wednesday, the Finance Ministry is to present to the Cabinet additional measures to maintain the budgeted deficit.
SITA