The public-finance deficit is expected to reach 6.29 percent of GDP this year, Slovakia’s Finance Minister, Ján Počiatek, said at a meeting of the parliamentary finance committee on September 3, the TASR newswire reported.
The shortfall will be €2.5 billion higher than the one stated in the originally planned budget and will reach €4 billion. The original deficit announced in the autumn of last year was planned to stand at 2.1 percent of GDP, but the crisis caused the Slovak economy to slump by around 5 percent in the first half of this year. Počiatek first increased the deficit estimate to 3 percent of GDP before now doubling it, TASR wrote.
Počiatek said that in the current crisis situation the European Commission does not have a problem with such a significant breach of the 3 percent limit set by the Stability and Growth Pact. He said that the estimated deficit is suitable in these conditions and creates a stabilising effect on the economy. TASR
Compiled by Zuzana Vilikovská from press reports
The Slovak Spectator cannot vouch for the accuracy of the information presented in its Flash News postings.
4. Sep 2009 at 10:00