BRATISLAVA, June 1, (WEBNOVINY) — After the first five months of this year, Slovakia’s state budget deficit is nearly one-fourth lower than a year ago. According to data published by the Finance Ministry, the budget gap represented EUR 1.567 billion at the end of May, down 24.6 percent y/y. In monthly terms, the state gap deepened by EUR 550 million. Behind the improvement of the state budget balance in yearly terms was an 11.1-percent y/y increase in total revenues to EUR 4.396 billion, as well as a moderate decrease in expenditures of 1.2 percent to EUR 5.964 billion. The y/y increase in revenues of the state was supported mainly by growth of tax revenues, as well as revenues from transfers and grants. Tax revenues reached EUR 3.187 billion at the end of the fifth month, up 7.6 percent y/y while fulfillment of the annual plan was 36.3 percent. Corporate income tax revenue swelled 60.6 percent to EUR 610.7 million. VAT collection grew 1.1 percent y/y to EUR 1.812 billion. Proceeds from excise tax revenue declined 2 percent y/y to EUR 778.6 million, while collection of withholding tax worsened by 0.9 percent to EUR 67.5 million. Personal income tax collection, which within the fiscal decentralization ends up almost entirely in the budgets of the municipalities, represented negative EUR 99.6 million as of late May.
Non-tax revenues were lower compared with the same period of last year when they declined 6 percent to EUR 275.4 million. Grants and transfers posted a significant increase of 32.6 percent to EUR 933.5 million. Revenues from the EU budget rose 38 percent to EUR 923.5 million.
On the side of spending after five months, current expenditures shrank 2.1 percent y/y to EUR 5.293 billion. Capital expenditures rose 6.5 percent to EUR 670.8 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
