BRATISLAVA, July 4, (WEBNOVINY) — The cost of state government consumed far fewer public funds than spent last year, according to Finance Minister Ivan Miklos. Spending on the operation of state institutions over the first six months of this year dropped 9.1 percent y/y, the finance minister said. While basic costs of the state’s operation reached EUR 4.77 billion during the first half of 2010, this year it was EUR 4.34 billion. Minister Miklos further commented at Monday’s news conference that state spending has decreased considerably and the budget has been developing favorably. He went on to say that compared with last year, spending on servicing the state debt and expenditures for co-financing projects with support from EU funds have been growing faster this year.
The state budget deficit of the Slovak Republic was virtually unchanged in June. According to data from the Ministry of Finance, the budget deficit was 1.578 billion euros as of the end of June, while in May it was EUR 1.567 billion. Year-on-year, the deficit improved by 35.3 percent. During the first half of 2010 the budget deficit was EUR 2.439 billion. The improved development in previous months resulted from growing budget revenues that were 12.4 percent higher and reached EUR 5.483 billion. Also, spending decreased by 3.5 percent to EUR 7.061 billion.
According to the state budget law adopted by parliament, the 2011 state budget should anticipate EUR 13.148 billion in revenues, with expenses of EUR 16.958 billion . 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, is expected to be 4.9 percent of GDP. Government plans call for reducing the deficit to below 3 percent of GDP in 2013.
SITA