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FinMin: Budget deficit to drop to 2.49 percent of GDP next year
18 Aug 2014 Flash News
THE DEFICIT of public finances is foreseen to drop to 2.49 percent of GDP next year, according to a public administration budget draft forecast that the Finance Ministry submitted for interdepartmental review.
In addition, the budget shortfall should drop to 1.43 percent of GDP in 2016 and drop further to 0.39 percent of GDP in 2017 as per the ministry's forecasts.
"With the budget approved for 2014 to be met, next year's structural deficit will improve by approximately 0.5 percent of GDP. The meeting of the nominal goals of the deficit will ensure a drop in the public debt from 2015 onwards," reads the ministry's material as reported by the TASR newswire.
In cash terms the deficit is predicted to fall from the planned figure of €3.28 billion this year to €2.88 billion next year. The budget expenditure should fall by €705 million on the year and reach €16.7 billion. Budget revenues should grow by €233 million to €13.8 billion next year when compared to expectations for this year.
The gross debt of the public administration reached 55.4 percent of GDP as of the end of 2013. Provided that budgeted goals are met, the debt will remain unchanged this year before dropping moderately next year.
Real salaries are foreseen to go up at the highest pace this year since 2008, especially thanks to a drop in inflation. The ministry expects inflation to have dropped to 0.3 percent on the year for 2014.
Compiled by Michaela Terenzani from press reports.
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