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Public debt rose by €7.3 billion, topping 52 percent in 2012

The gross debt of the public administration reached 52.1 percent of GDP as of the end of last year, which represents an 8.8 percent rise, or €7.3 billion, Finance Minister Peter Kažimír told a press conference on Monday, April 22.

The gross debt of the public administration reached 52.1 percent of GDP as of the end of last year, which represents an 8.8 percent rise, or €7.3 billion, Finance Minister Peter Kažimír told a press conference on Monday, April 22.

"The biggest share of the rise in debt was due to the budget deficit itself to the tune of €3.8 billion," said Kažimír, as quoted by the TASR newswire. The increase was also partly due to a rise in the value of assets of the public administration, as the funding of the state debt was covered from state reserves in late 2011. The third factor lay in an increase of €1.32 billion in Slovakia's contribution to the European Financial Stability Facility (EFSF).

Under the act on budgetary responsibility, the minister is now required to explain to Parliament why the debt topped 50 percent of GDP. Kažimír also has to suggest measures aimed at reining in the debt. Speaking on Monday, the minister declined to comment on which measures he has in mind, but said that they will be related to Slovakia's Stability Programme for 2013-16. According to the minister, the debt is forecast to increase to 54.6-54.8 percent this year. However, the ministry believes the debt will rise to 56.3 percent of GDP in 2014 and even higher - to 56.7 percent - in 2015. A drop is projected for 2016 to 55.9 percent.

(Source: TASR)
Compiled by Zuzana Vilikovská from press reports
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