The Slovak Parliament approved a draft amendment to the state budget law for 2010 on Tuesday, November 30. The amendment increases the deficit by €794 million to €4.54 billion.
The planned general government budget deficit of 5.5 percent of gross domestic product (GDP) in 2010 was unrealistic, according to the Finance Ministry. It estimates the deficit will actually reach 7.84 percent of GDP this year. The Finance Ministry, according to the SITA newswire, said that the balance of public funds is being negatively influenced by a steeper fall in tax revenues than had been expected. The tax shortfall is €620.5 million, while non-tax revenues are €43.5 million lower than had been projected.
Public expenditure was increased by €200 million this year in connection with damage caused by floods, moves to reduce the deficit in the old-age pension fund, and social policy measures. Originally, parliament approved a budget for this year with revenues of €12.531 billion and expenditures of €16.277 billion, which would have meant a deficit of €3.746 billion. In 2009, the deficit reached €2.791 billion. The new Finance Minister, Ivan Mikloš, announced after taking office in July that the budget as approved was not realistic and would need to be revised.
Compiled by Zuzana Vilikovská from press reports
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1. Dec 2010 at 14:00