Spectator on facebook

Spectator on facebook

Finance Ministry estimates budget deficit of 6.3% of GDP for 2009

Slovakia's state deficit is expected to reach 6.3 percent of GDP this year and the outlook for the future still holds several risk factors that could further deepen the deficit, wrote Slovakia’s Finance Ministry in its long-awaited report on the macro economy and state finances which the government approved on September 9, the TASR newswire wrote.

Slovakia's state deficit is expected to reach 6.3 percent of GDP this year and the outlook for the future still holds several risk factors that could further deepen the deficit, wrote Slovakia’s Finance Ministry in its long-awaited report on the macro economy and state finances which the government approved on September 9, the TASR newswire wrote.

"The biggest risk in terms of estimating the public administration balance is the continuing uncertainty regarding the development of the economy," Finance Minister Ján Počiatek told TASR. Gross domestic product (GDP) fell in the first quarter of 2009 by 5.6 percent, in the second quarter by 5.3 percent and is expected to decline by 6.2 percent for the entire year of 2009.

The downturn had a negative influence on state tax revenues as well as lower tax incomes to towns and regions. As a result, towns and regional authorities will need to borrow funds to maintain service levels.

Last year before the worst of the crisis affected the Slovak economy, the government had estimated a deficit of 2.1 percent. The deficit will be €2.5 billion higher than originally planned and will reach €4 billion. The Finance Ministry also indicates that the deficit will also increase by some €1.439 billion because of higher government expenditures. 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.

Top stories

How did Communism happen in Czechoslovakia?

For the 40 years, Czechs and Slovaks would celebrate February 25 as Victorious February, even though the enthusiasm of most of those who supported Communists in 1948 would very quickly evaporate.

Prime Minister Klement Gottwald (right) swears an oath into the hands of President Edvard Benes on February 27, 1948 at the Prague Castle.

Cemetery with a remarkable creative concept Photo

The shapes of tombstones were prescribed until 1997

Vrakuňa Cemetery in Bratislava

Being young is harder than it used to be

The failure of older generations to sympathise with youth means politics are primarily a contest of who can hand out more gifts to old people.

Young Slovaks have problems finding proper jobs.

Historian: After 1948, Czechoslovakia was paralysed with fear

On February 25, Czechs and Slovaks mark 70 years since the rise of Communism in their common state. Historian Jan Pešek talks about the coup and its aftermath.

Demonstration in Prague, Wenceslas' Square, on February 28, 1948.