Budget deficit fell slightly in July

The state-budget deficit dropped from €2.439 billion in June to €2.408 billion in July, the Finance Ministry announced on Monday, August 2. The July 2010 figure, however, is still significant above the figure for July 2009, when the deficit stood at €914 million.

The state-budget deficit dropped from €2.439 billion in June to €2.408 billion in July, the Finance Ministry announced on Monday, August 2. The July 2010 figure, however, is still significant above the figure for July 2009, when the deficit stood at €914 million.

A total deficit of €3.476 billion is projected for the whole of 2010, with the figure to July representing 64 percent of this sum. State incomes increased by 4 percent year-on-year to reach €6.035 billion in July, or 48 percent of the expected sum for the whole year of €12.531 billion. Meanwhile, state expenditures exceeded the expected amount by 26 percent, reaching €8.443 billion, or 52 percent of the planned €16.277 billion for the whole of 2010. Slovakia's economic situation last year was strongly affected by the global economic crisis, which contributed to a year-on-year contraction of 4.7 percent. As a result, the public-finance deficit in 2009 reached 6.77 percent of GDP instead of the forecast 2.1 percent, the TASR newswire wrote.

According to the public-administration budget for the next three years, which was approved by the Slovak parliament in November 2009, the deficit should have been reduced to 5.5 percent of GDP this year, to 4.2 percent in 2011, and below the 3-percent threshold required by the EU's Growth and Stability Pact in 2012. The ministry published a new prognosis later, however, according to which it will not to meet this year's commitment. Without additional measures, the deficit is now expected to grow this year, to 6.98 percent of GDP.

Source: 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.

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