BRATISLAVA, August 1, (WEBNOVINY) — The state budget deficit of the Slovak Republic posted a deficit of EUR 1.675 billion as of late July. According to data from the Ministry of Finance, budget revenues grew 8.9 percent to EUR 6.569 billion, while expenditures fell 2.4 percent to EUR 8.244 billion. Thanks to growing revenues and declining spending, the state budget deficit has decreased by over thirty percent in annualized terms, according to the ministry’s spokesman Martin Jaros. The basic costs of the state’s operation have preserved a strong decline rate, too, Jaros commented. At the end of the seventh month of last year, the state budget gap represented EUR 2.4 billion.
The state budget deficit narrowed in monthly terms, as well, going down 2.3 percent. Behind it were higher tax revenues by 8.9 percent y/y at EUR 4.921 billion. Compared with the previous month, tax revenues grew 0.7 percent. Personal income tax collection fell 74 percent y/y to EUR 10.869 million, but grew 27.4 percent m/m. Corporate income tax revenue rose 52.3 percent y/y to EUR 968.7 million, up 2.8 percent m/m. The collection of value-added tax amounted to EUR 2.682 billion, an increase of 2.7 percent y/y and 0.3 percent m/m.
Non-tax revenue of the state budget soared 9.6 percent to EUR 459.4 million. Grants and transfers recorded growth of 8.3 percent to EUR 1.189 billion. Spending decreased by 2.4 percent y/y, with current expenditures dropping 1.2 percent y/y to EUR 7.251 billion. Capital expenditures decreased by 9.9 percent to EUR 993.2 million.
According to the state budget law adopted by parliament, the state budget should have EUR 13.148 billion in revenues and EUR 16.958 billion expenses in 2011. 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, should be 4.9 percent of GDP. The government plans to squeeze the deficit bellow 3 percent of GDP in 2013.
SITA
