Spectator on facebook

Spectator on facebook

IFP: Slovakia will not have to introduce budgetary ceilings

SLOVAKIA did not diverge much from its commitment to observe the rule of keeping a balanced budget in 2014, so the correction mechanism and expenditure ceilings will not have to be activated, states a report drawn up by the Finance Ministry’s Financial Policy Institute (IFP) released on July 2.

(Source: Sme)

A Eurostat report from the spring stated that Slovakia’s structural deficit in 2014 reached 2.9 percent of GDP.

“So, the structural balance, which is the primary indicator for evaluating a balanced budget, deviated by 0.3 percent of GDP from the current reference level of 2.6 percent of GDP,” stated IFP, as quoted by the TASR newswire.

National legislation states that the public finance deficit should be either balanced or post a surplus, which means that the structural deficit can be at 0.5 percent of GDP.

The analysts also focused on the expenditure rule, which they view as a supplementary indicator aimed at checking whether the pace of expenditure growth with regard to changes in income corresponds to potential economic growth. The report reveals that Slovakia's budgetary expenditures grew too quickly last year.

“When it comes to meeting the expenditure rule, a significant deviation amounting to 0.7 percent of GDP was recorded,” states the report, as quoted by TASR . The rules consider a change exceeding 0.5 percent to be a “significant deviation”.

Nevertheless, the IFP report also takes into account other circumstances that are not necessarily contained in Eurostat data. For example, IFP noticed an improvement in tax incomes, which, according to conservative estimates, should improve both the nominal and structural balances by 0.2 percent of GDP.  

The processing of personal data is subject to our Privacy Policy and the Cookie Policy. Before submitting your e-mail address, please make sure to acquaint yourself with these documents.

Top stories

Fallen lines and engine fires: Slovak trains are not without incidents Photo

Slovak rail carrier ZSSK is facing a massive wave of criticism after some recent accidents.

Fire on a train between Šaľa and Galanta.

Rules for hiring foreigners are simpler. For exceptions

Despite positive changes, employers still point to some barriers preventing more effective and simpler recruitment of foreign workers.

Some problems with Foreigners’ Police continue.

For a Decent Slovakia protests to resume on Friday

After a summer break, organisers of the protests that have drawn masses to Slovakia’s streets stated that their – and the citizens’ – demands are far from being met.

For A Decent Slovakia march on June 22, 2018, in Bratislava.

Indentikit picture released in murder case of Ján Kuciak may have bourne fruit

A mason from the village where the murdered journalist and his fiancée were found claims he knows the man from the identikit who is wanted for questioning.

Identikit of the man wanted as a witness in the case of Ján Kuciak murder