BRATISLAVA, May 2, (WEBNOVINY) — After the first four months of this year, Slovakia’s state budget deficit deepened by more than EUR 360 million. According to data published by the Finance Ministry, the budget gap represented EUR 1.019 billion at the end of April, which was EUR 655.2 million in late March. In a year-on-year comparison, the deficit is 31.2 percent lower than after the first four months of 2010, when the deficit was EUR 1.48 billion. Behind the improvement of the state budget balance was a 12.8 percent increase in total revenues to EUR 3.636 billion, as well as a moderate decrease in expenditures of 1.1 percent to EUR 4.654 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 2.668 billion at the end of the fourth month, up 8.3 percent y/y and fulfillment of the annual plan to 30.4 percent. Corporate income tax revenue swelled 53.1 percent to EUR 578.1 million. VAT collection grew 4.9 percent y/y to EUR 1.497 billion. Proceeds Excise tax revenue declined 5.5 percent y/y to EUR 616.3 million, while collection of withholding tax worsened by 6.8 percent to EUR 56.9 million. Personal income tax collection, which within the fiscal decentralization ends up almost entirely in the budgets of the municipalities, represented negative EUR 93.4 million as of late April.
Non-tax revenues were higher compared with the same period of last year when they rose 7.2 percent to EUR 208.1 million. Grants and transfers posted a significant increase of 34 percent to EUR 759.3 million. Revenues from the EU budget rose 39.6 percent to EUR 751.6 million, which represents just 22.5 percent fulfillment of the annual projection.
On the side of spending after four months, current expenditures shrank 1.1 percent y/y to EUR 4.654 billion. In March, they decreased by 2.5 percent y/y. Current expenditures were drawn to 27.4 percent of the 2011 plan. Capital expenditures jumped 13.1 percent to EUR 530.4 million, accounting for 18.3 percent of the budgeted volume for this year.
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
