BRATISLAVA, December 19, (WEBNOVINY) — The general government deficit in Slovakia is expected to reach 4.62% of gross domestic product (GDP) this year. This is according to a current report on macroeconomic developments, which the Cabinet of Robert Fico approved on Wednesday. Government’s key fiscal objective should thus achieve a slightly better result than the approved budget for this year, where the Finance Ministry foresees a deficit of 4.64% of GDP.
The Finance Ministry calculated the amount that will positively influence the outcome of general government finances compared with the budget at EUR 784 million. The government’s positive performance should be influenced by spending cuts for example in funds earmarked for financing of joint programs in Slovakia and the EU of EUR 203 million associated with lower than expected use of EU funds this year. General government revenues will be about EUR 154 million higher by received grants of local self-governments, public universities, and the state budget. The ministry quantified the effect of transferred spending limits at EUR 114 million and cost saving in the Operational Program Transport beyond co-financing at EUR 120 million. „Lower spending on social insurance saved EUR 84 million mainly associated with lower spending on early retirement pensions,“ the finance department enumerates further positive impacts on public finances.
On the other hand, the sum of negative influences in comparison with the budget amounts to EUR 767 million. Lower tax and payroll levies revenue, including the positive impact of the consolidation package represent the amount to EUR 321 million. Without the impact of legislative changes the shortfall would have reached EUR 609 million.
Finance Minister Peter Kazimir has reported already in late November that tens of millions of euros will be missing in this year’s and next year’s budget. The reason is weaker collection of taxes.
SITA