Spectator on facebook

Spectator on facebook

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 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.

Topic: Economics


Top stories

Czech PM files lawsuit against Slovakia at ECHR

Czech Premier Andrej Babiš sues his homeland in the European Court for Human Rights in connection with records proving his collaboration with the communist-era secret police.

Andrej Babiš

Revitalised industrial building offers work, entertainment and housing

Mlynica is an excellent example of successful conversion of unused industrial building.

Mlynica

Youngest Slovak village is a "communist dream come true” Photo

Dedina Mládeže (The Youth Village) was a mere experiment during the communist era. Now, the still inhabited village has morphed into an open-air museum.

Dedina Mládeže

What are the reasons behind low wages in Slovakia?

The average wage costs per Slovak employee accounts for only 44 percent of the EU average.