Slovakia’s public budget deficit reaches €2.4 billion after first half of 2010

Slovakia’s state budget deficit continues to deepen and according to the figures released by the Slovak Finance Ministry, the deficit reached €2.436 billion at the end of June, which was €360 million more than at the end of May. In annual terms, the deficit more than doubled compared with the deficit of €1.108 billion reported at the end of June 2009. The government projected the deficit for all of 2010 to reach €3.746 billion, the SITA newswire wrote.

Slovakia’s state budget deficit continues to deepen and according to the figures released by the Slovak Finance Ministry, the deficit reached €2.436 billion at the end of June, which was €360 million more than at the end of May. In annual terms, the deficit more than doubled compared with the deficit of €1.108 billion reported at the end of June 2009. The government projected the deficit for all of 2010 to reach €3.746 billion, the SITA newswire wrote.

The budget deficit worsened even though the revenue development slightly improved year-over-year. Expenditures jumped 28.1 percent year-on-year to €7.316 billion,
which was 44.9 percent of the level planned for this year. Revenues grew 5.9 percent to €4.877 billion (38.9 percent of the sum budgeted for 2010).

Tax revenues, which make up a significant portion of state budget revenues, are not reaching last year's levels. This indicator dropped 0.4 percent y-o-y to €3.685 billion, representing 42.7 percent of the projections. Capital expenditures more than doubled, going up by 101.9 percent y-o-y to €928.9 million and current expenditures rose by 21.6 percent to €6.387 billion.

The 2010 budget projects revenues of €12.531 billion and expenditures of €16.277 billion. The state budget deficit should thus reach €3.746 billion. The gap in 2009 was €2.791 billion.

The outgoing government initially declared the intention to consolidate the general government finances, including the state budget, in 2010. According to that plan, the deficit was supposed to go down from last year's 6.8 percent of GDP to 5.5 percent of GDP this year. But outgoing Finance Minister Ján Počiatek has already said that the deficit will likely approach seven percent of GDP this year.

Source: SITA
Compiled by Zuzana Vilikovská from press reports
The Slovak Spectator cannot vouch for the accuracy of the information presented in its Flash News postings.

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