Slovakia’s state budget deficit deepened considerably in May according to data released by the Finance Ministry, with the SITA newswire writing that the deficit increased by nearly €1 billion and now stands at €2.16 billion.
In annual terms, the state budget deficit was 37.8 percent higher in May 2012 compared to May 2011 and in the five-month period had reached 59 percent of the budgeted amount, SITA wrote, adding that in April the deficit had increased by only €16 million and stood at €1.171 billion.
The main reason, SITA wrote, was lower revenue that totalled €4.332 billion at the end of May, 1.5 percent less than a year ago and that the state had collected only 31.8 percent of its projected revenue in the first five months of 2012. Overall state expenditures continued to grow and after five months, they were 8.8 percent higher than a year ago and totalled €6.491 billion, 37.5 percent of the yearly plan.
Taxes constitute most of state revenue and had increased year-on-year by 3.3 percent to €3.292 billion as of the end of May. After five months, the state had collected only one-third of its annual projection, with falling VAT and excise taxes being the primary cause.
Compiled by Zuzana Vilikovská from press reports
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