State budget posted €2.42 billion deficit in August

The state budget posted a deficit of €2.42 billion, up 26.2 percent year-on-year, as of August 31, the Finance Ministry announced on September 2. The state income went up by €240.4 million y-o-y, while expenditures increased by €743.4 million y-o-y.

The state budget posted a deficit of €2.42 billion, up 26.2 percent year-on-year, as of August 31, the Finance Ministry announced on September 2. The state income went up by €240.4 million y-o-y, while expenditures increased by €743.4 million y-o-y.

“Nevertheless, the ratio of state budget expenditures reached only 55.39 percent [of the yearly projection], which was 4.6 percentage points less than last year,” the ministry said, as quoted by the TASR newswire. The Finance Ministry recorded an increase in tax revenues from almost all types of taxes, mainly in VAT (up by €85.5 million). Conversely, the income from corporate taxes was down by €62.1 million y-o-y. The Finance Ministry cites the cut in the corporate income tax rate from 23 percent to 22 percent, and subsequent reduction of tax advances.

The deficit swelled by €267 million in August alone, the SITA newswire wrote. State budget revenue as of the end of the August went up 3.4 percent to €7.214 billion, while expenditures rose by 8.4 percent to €9.634 billion. This year, revenue is projected at €14.108 billion, expenditures at €17.392 billion and the gap at €3.284 billion.

Transfers from the European Union budget continue to cause problems for the state treasury. Due to suspension of payments in most operational programmes, transfers from the EU budget have dropped by €341.9 million annually. “The European Commission is expected to decide on releasing the payments in the autumn," the Finance Ministry added, as quoted by SITA. On the other hand, income from dividends increased by nearly €141 million from a year ago. Within overall expenditures, in particular the government debt service costs swelled by €188 million.

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