Minister Kažimír presents a new budget

According to the draft budget, the Slovak government is planning a deficit of 0.83 percent.

Finance Minister Peter KažimírFinance Minister Peter Kažimír(Source: TASR)

For 2018, the cabinet is calculating a deficit of 0.83 percent, reduced from this year’s 1.29 percent. This stems from the first budget draft for next year the Finance Ministry published on October 4. The government is expected to discuss the draft budget next week, on October 11; then it will be filed for approval to the parliament, the Sme daily wrote.

At first glance, the plan to reduce the deficit is daring and the ruling coalition presented it in this way. However, quite the opposite is true. Last year, when approving the current budget, a deficit of 0.44 percent was foreseen for 2018. In practice, this means that the cabinet is retreating from its original intentions and wants spend more next year than originally estimated. In effect, this means that the cabinet plans to spend €300 million more next year than it had promised a year ago, the Denník N daily wrote.

The Council for Budgetary Responsibility pointed this out in its recent report.

Planned deficit, debt and economic growth

For 2019, Finance Minister Peter Kažimír is proposing a budgetary deficit of 0.10 percent, and for 2020, a balanced public administration budget’s management is being proposed.

The planned debt for the next year is 49.9 percent – allegedly the lowest in Slovakia since 2012. As for percentage, this is true, but nominally, Slovakia’s debt keeps increasing every year, including the estimates for 2018.

The economy is expected to grow by 4.2 percent next year (against 3.3 percent this year).

“Mainly the planned production launch in automotive plants, and the related export growth connected are behind the acceleration of the economy’s growth compared to the previous year,” the Finance Ministry explains, as quoted by Sme.

Employment is expected to grow by 1.8 percent. New jobs are expected to appear in all sectors of the economy but primarily in industry and services. Thanks to this, the unemployment rate is foreseen as declining to 7.3 percent, according to Sme.

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.

Theme: Economics


Top stories

The coalition mentioned early elections

PM Peter Pellegrini was critical of SNS. The party responded that his opinion is not important.

Tensions between PM Peter Pellegrini and the SNS party of Andrej Danko are growing.

I lost my sister in Auschwitz, Slovakia lost its future

Edita Grosmanová was on the first transport of Jews to the Nazi concentration camp in Auschwitz on March 25, 1942.

Edita Grosmanova and her husband Ladislav.

An entrepreneur has avoided trial 30 times since embezzling non-banking firms in 2002

The Supreme Court has suspended prosecution of Jozef Majský, who embezzled non-banking firms Horizont Slovakia and BMG Invest more than 15 years ago.

Businessman Jozef Majský during the trial in February 2010.

Bratislava is the passage of my life, says photographer Anton Sládek

He has been taking pictures of the city since his youth.

Poštová Street