BRATISLAVA, April 1, (WEBNOVINY) – After the first three months of this year, the deficit of the state budget deepened by more than EUR 310 million. According to data published by the Finance Ministry, the state budget gap represented EUR 655.2 million at the end of March, which was EUR 344.1 million in February. In a year-on-year comparison, the deficit is 33.4 percent lower, as after the first three months of 2010, the state coffers posted a deficit of EUR 983.5 million. Behind the improvement of the state budget balance was a 9.6 percent increase in total revenues to EUR 2.752 billion, as well as a moderate decrease in expenditures of 2.5 percent to EUR 3.407 billion.
The y/y increase in revenues of the state was supported mainly by growth of revenues from transfers and grants. Tax revenues, on the other hand, dropped 0.5 percent y/y. Revenues from excise taxes were 11.3 percent lower at EUR 442.3 million. VAT collection grew 5.1 percent y/y to EUR 962.8 million. Corporate income tax proceeds swelled 7.3 percent to EUR 527.2 million. Collection of withholding tax worsened 5.5 percent to EUR 46.3 million. Personal income tax collection, which within the fiscal decentralization ends up almost entirely in the budgets of the municipalities, represented EUR 3.8 million as of late March.
Non-tax revenues were lower compared with the same period of last year when they dropped 7.2 percent to EUR 118.5 million. On the contrary, grants and transfers posted a significant increase of 68.7 percent to EUR 640.3 million. Revenues from the EU budget rose 76 percent to EUR 633.9 million.
On the side of spending after three months, current expenditures shrank 5 percent y/y to EUR 3.02 billion. Capital expenditures jumped 22.3 percent to EUR 387.2 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 GDP.
SITA
