BRATISLAVA, January 26, (WEBNOVINY) — Last year’s general government performance of the Slovak Republic was probably better than the government had originally planned, informed the Finance Ministry. According to preliminary results of the general government, the deficit for 2011 reached 4.6 percent of GDP, which was 0.3 percentage points better than the government planned when it drafted the budget for 2011. In 2010, the general government produced a deficit of 8.1 percent of GDP.
The Finance Ministry expects that after the results for 2011 are published for other EU countries, it would turn out that Slovakia achieved one of the best improvements in consolidating the general government budget in Europe. “We’ve radically consolidated public funds, creating conditions for having a functioning economy in Slovakia, which would bring more and better jobs,” said Finance Minister Ivan Miklos (SDKU-DS) at his press conference on Thursday.
Miklos informed that 86 percent of public funds consolidation in 2011 were spending cuts, the rest was increased revenue. “Basic costs of running the state were 1.2 billion euros lower than they would be without consolidation,” adds the ministry. Final economic results of EU governments will be made public at the end of March, when national governments have to submit their data to Eurostat. As Miklos informed, minor changes could still occur.
According to preliminary data the 2011, Slovakia’s general government deficit reached 3.186 billion euros which is 262 million less than was originally planned. The biggest contributor to the improved result came from the state budget, which spent 534 million euros less than planned. The 2012, Slovakia state budget plans a 4.6-percent deficit after the original plans for a 3.8-percent of GDP deficit failed upon deepening financial and economic crisis and the collapse of Iveta Radicova’s government in October 2011.
SITA