BRATISLAVA, November 13, (WEBNOVINY) – This year’s state budget deficit will be by approximately one percentage point higher on paper than the Cabinet projected. The reason behind it is that Brussels has decided to include in this year’s result loans provided by the previous government of Robert Fico to state-run railway companies and hospitals. The Cabinet projects this year’s deficit at 4.9 percent of GDP, while the EU statistics office Eurostat will increase the figure by almost one percentage point.
Originally, the unsettled loans were to be included in deficits for years when they were provided. Eurostat, however, decided to include them in the deficit for the year when they were identified as non-refundable. The whole sum provided to state-run railway firms and hospitals between 2008 and 2010 will thus be added to the 2011 deficit. According to the fall prognosis of the European Commission, the deficit is expected to reach 5.8 percent of GDP.
The Finance Ministry comments that the revision of Eurostat’s methodology does not change the government’s plan to reach a state budget deficit on the original level of 4.9 percent.
SITA
