Slovakia fails to meet balanced budget plan

Debt set to increase by hundreds of millions of euros this year.

Ladislav KamenickýLadislav Kamenický(Source: TASR)

Despite the original promises, it seems that Slovakia will not have a balanced budget this year.

“Unfortunately, we will not be able to fulfil our aim and the economy will be in red again,” said Finance Minister Ladislav Kamenický, as quoted by the TASR newswire, without specifying the numbers.

The Council for Budget Responsibility estimated the deficit would amount to €1.1 billion.

Read also:Government proposes 2019 budget with a record low deficit, but without any crucial reforms Read more 

Cigarettes will not help

One of the reasons is the steep slow-down of the economy. It will grow only by 2.4 percent, according to the estimates of the Institute for Financial Policy, which runs under the auspices of the Finance Ministry.

The situation will not improve next year either, and the economy will continue to slow.

Kamenický intended to help the budget with his proposal to increase the excise tax on tobacco products, which would deliver more than €100 million extra to the state coffers. However, Speaker of Parliament Andrej Danko has not supported this plan.

The latest GDP estimate from the Finance Ministry is not a big surprise. The department has been saying that the economy is slowing down for a long time, TASR wrote.

Opposition critical

“We should have celebrated at the finish, not at the start,” said MP for the Ordinary People and Independent Personalities (OĽaNO) Eduard Heger, as quoted by TASR. He was referring to the celebrations when the balanced budget proposals were approved by parliament.

However, it is now clear that the difference in the state budget will be more than €1 billion.

Two people are responsible for this result – former finance minister Peter Kažimír, and his successor Kamenický, added Heger.

“When Kamenický came into office, the estimated hole in the budget amounted to €790 million, according to the Council for Budget Responsibility,” he said, as quoted by TASR.

In the following five months, it has increased by €350 million to the current €1.140 billion, he added.

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: Ladislav Kamenický

Top stories

Kočner allegedly made a death threat against ex-general prosecutor Trnka

The recently published conversation concerns the Gorilla file, describing corruptive practices.

Marian Kočner in court.

Slovakia shoulders a heavier tax-levy burden than most, experts opine

The Slovak tax system is more generous to families than to single persons.

In the field of corporate taxation, Slovakia ranks among the most burdened of OECD countries.

First-aid kits in cars will not have to be replaced after expiration

The expiration will not be checked anymore, the Transport Ministry has decided.

Illustrative stock photo

Slovakia's best photo of 2019: Kočner hiding in a police car

Take a look at the best photos from the 2019 Slovak Press Photo contest.

The picture of controversial businessman Marián Kočner, taken by Denník N photographer Tomáš Benedikovič, wins the singles category in the News section of the 2019 Slovak Press Photo contest