BRATISLAVA, September 2, (WEBNOVINY) — The state budget gap of the Slovak Republic widened by nearly EUR 350 million in August. According to data from the Ministry of Finance, the state budget deficit reached EUR 2.022 billion in late August, which was EUR 1.675 billion as of late July. In year-on-year comparison, the gap continued to be lower by nearly one-third. Compared with the first eight months of last year, the state budget deficit is lower by 28.4 percent.
Total revenues grew 8.5 percent y/y to EUR 7.343 billion, which is 55.9 percent of the annual projection. Total expenditures of the state administration moderately decreased, going down 2.4 percent to EUR 9.365 billion. As of late August, the state spend 58.2 percent of the total expenditures projected for this year.
Tax revenues, which make up a better portion of the state’s revenues, grew 8.4 percent y/y to EUR 5.526 billion representing 62.9 percent of the 2011 budget plan. Corporate income tax revenue developed positively, rising 48 percent y/y to EUR 1.126 billion. The collection of value-added tax amounted to EUR 2.942 billion, an increase of 1.9 percent y/y. Excise tax revenues went up 1.7 percent y/y to EUR 1.299 billion.
On the other hand, revenues from withholding tax declined 10.7 percent to EUR 99.7 million. Personal income tax revenues, which are almost fully transferred to budgets of self-governments within fiscal decentralization reached EUR 13.1 million in late August.
Non-tax revenue of the state budget soared 9.2 percent to EUR 528.9 million. Grants and transfers recorded growth of 8.5 percent to EUR 1.288 billion. Thereof revenues from the EU swelled 46.8 percent y/y to EUR 1.269 billion.
Current expenditures dropped 1.8 percent y/y to EUR 8.181 billion. Capital expenditures decreased by 6.1 percent to EUR 1.185 billion. Current expenditures were drawn to 58.2 percent and capital expenditures to 41 percent of the annual plan.
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
