A record deficit is expected at the end of the year, not only due to COVID-19

Expenditures unrelated to the pandemic will account for more than one-third of the 2020 general government deficit.

The Peter Pellegrini cabinet did not include 13th pensions in the general government budget for 2020.The Peter Pellegrini cabinet did not include 13th pensions in the general government budget for 2020. (Source: Sme - Marko Erd)

Slovakia will end this year with a record general government deficit of 8.4 percent of gross domestic product (GDP), up from the originally projected 0.5 percent. Finance Minister Eduard Heger (OĽaNO) points out that more than a third of this deficit is unrelated to the impacts of the novel coronavirus pandemic.

Related articleCentral bank governor: Things are worse for Slovakia than expected Read more 

“The budget, approved by the previous parliament with a 0.5 percent deficit, was an illusion,” said Heger.

Moreover, the Defence Ministry's budget was underrated by €289 million, while the performance of local governments should worsen by €189 million. Another shortfall, which is not related to the fight against the pandemic, is adjusted EU funds corrections worth €180 million. The ministry corrected the budgeted revenues from e-cash registers and nano markers by the same amount. By comparison, the sum of these non-pandemic items is not much lower than, for example, the estimated revenue shortfall from the so-far unprecedented expected economic downturn, which is estimated at less than €2.4 billion.

The rest of this article is premium content at Spectator.sk
Subscribe now for full access

I already have subscription - Sign in

Subscription provides you with:
  • Immediate access to all locked articles (premium content) on Spectator.sk
  • Special weekly news summary + an audio recording with a weekly news summary to listen to at your convenience (received on a weekly basis directly to your e-mail)
  • PDF version of the latest issue of our newspaper, The Slovak Spectator, emailed directly to you
  • Access to all premium content on Sme.sk and Korzar.sk

Top stories

News digest: Schools across Slovakia are closing

Problems with regional buses in Bratislava persist. Meteorologists issue warnings against snow for Tuesday and Wednesday.

2 h
Illustrative stock photo

Regional hygienists starting to close schools

Schools in 11 districts have switched to remote learning so far.

3 h
Miroslava Sotáková

The great thing about Slovakia is the lack of crowds, says Slovak living in New York

Miroslava Sotáková works for Google and is bringing up three kids in New York.

12 h
Online shopping, illustrative stock photo.

Online scams spiked during Black Friday

Experts recommend double-checking discounts.

29. nov
Skryť Close ad