The state budget deficit grew from €1.019 billion at the end of April to €1.567 billion in late May, the Finance Ministry said on Wednesday, June 1. The deficit was 24.6 percent lower than the one recorded in May of last year (€2.078 billion), however. According to estimates, the figure should grow to €3.8 billion by the end of 2011, the TASR newswire wrote. State revenues reached €4.396 billion in May, up 11.1 percent y-o-y. Expenditures stood at €5.964 billion, falling by 1.2 percent y-o-y.
Commenting on the budget report, UniCredit bank analyst David Dereník praised the government for its discipline in holding expenditures down. However, he was less optimistic as far as their revenue estimates were concerned. Dereník pointed out that despite their solid performance on expenditure, the government should take note of the fact that revenues stood at only 33 percent of the all-year plan over the first five months of this year, compared to an expected 38 percent over the period. "That means that overall risks are higher and that the government might be forced to introduce extra measures to secure the budget's essential parameters - either via boosting revenues, or by cutting spending," Dereník said, as quoted by TASR.
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2. Jun 2011 at 14:00