Spectator on facebook

Spectator on facebook

Slovakia's budget deficit ends 2011 at 4.8 percent of GDP

Slovakia posted a government deficit of 4.8 percent of GDP in 2011 and its gross public debt reached 43.3 percent of gross domestic product according to preliminary figures released by the Statistics Office and the Finance Ministry in using the methodology of the European System of National and Regional Accounts (ESA 95) that have now been sent to Eurostat, the EU’s statistical agency, the TASR newswire reported. Eurostat will now double check the data and will release official figures on public finances in all EU member countries on April 23. The Finance Ministry said the country’s public finances were subject to two main one-off influences last year: debts from state-run railway companies and hospitals of €633 million from 2008-2010 that had a negative impact equivalent to 0.8 percent of GDP. A VAT payment of €174 million by GRANVIA construction company on construction of the R1 expressway had a favourable impact of 0.2 percent of GDP. The ministry noted that the budget deficit was cut from 7.7 percent of GDP in 2010 to last year's 4.8 percent. "If it wasn't for the one-off influences referred to previously, the drop in the deficit would be from 8.13 percent of GDP in 2010 to 4.15 percent the following year," TASR wrote in quoting the ministry.

Slovakia posted a government deficit of 4.8 percent of GDP in 2011 and its gross public debt reached 43.3 percent of gross domestic product according to preliminary figures released by the Statistics Office and the Finance Ministry in using the methodology of the European System of National and Regional Accounts (ESA 95) that have now been sent to Eurostat, the EU’s statistical agency, the TASR newswire reported.

Eurostat will now double check the data and will release official figures on public finances in all EU member countries on April 23. The Finance Ministry said the country’s public finances were subject to two main one-off influences last year: debts from state-run railway companies and hospitals of €633 million from 2008-2010 that had a negative impact equivalent to 0.8 percent of GDP. A VAT payment of €174 million by GRANVIA construction company on construction of the R1 expressway had a favourable impact of 0.2 percent of GDP.

The ministry noted that the budget deficit was cut from 7.7 percent of GDP in 2010 to last year's 4.8 percent. "If it wasn't for the one-off influences referred to previously, the drop in the deficit would be from 8.13 percent of GDP in 2010 to 4.15 percent the following year," TASR wrote in quoting the ministry.

The ministry added that in comparison with the planned 2012 deficit, major improvements were reached by savings in areas such as Slovakia's co-financing of projects with EU funds (€227 million) and better management at Sociálna Poisťovňa, the social insurer, bringing savings of €186 million while additional expenditures related to the state-owned railway companies amounted to €200 million.

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.

Top stories

EC scrutinises state aid for Jaguar Photo

There is a question whether the scrutiny may impact the carmaker’s plans to invest in Slovakia.

The construction site of a brand new plant of Jaguar Land Rover near Nitra.

Vote-buying scandal lands village mayor in court

Some Roma claiming the mayor of Gemerská Poloma, Miroslav Michalka was buying votes, have changed their testimonies.

Stanislav Kučerák (blue shirt) is a key witness in the vote-buying case.

Police president refuses the proposals of students

He turned down their suggestions for a public debate but invites them to talk about corruption at the Police Corps Presidium.

Police President Tibor Gašpar

How to sell Slovak books to English readers

Slovak literature makes it to the big bookstores of London, but it is unlikely to become a bestseller yet.

On Wednesday, Slovak literature will be presented in one of the biggest bookstores in London. Among the new books translated into English is also the anthology of current Slovak prose selected and translated by Magdalena Mullek and Júlia Sherwood.