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Analysts: 2010 Deficit Will Reach 7.4 percent If Nothing Changes
Wednesday 02 June 2010 Zoom in | Print page
Bratislava, June 2 (TASR) - Unless substantial measures in the area of public finances are adopted, the public-finance deficit will climb to 7.4 percent of GDP this year, according to a survey of members of the Club of Economic Analysts (KEA) that was released on Wednesday.
The Government's official objective for 2010 is to cut the deficit from 6.8 percent of GDP in 2009 to 5.5 percent.
"Most members believe that measures in the area of expenditures won't be enough to ensure a sustainable cut in the deficit, while a tax and contributions reform aimed at increasing their collection will also be needed," said the club's chief Jan Toth.
All KEA members who took part in the survey also expressed their reservations regarding the manner in which the public-finance deficit is calculated. According to them, this official way of reckoning doesn't fully reflect the burden placed on public finances in areas such as public-private partnership (PPP) projects or aid to state-run enterprises.
Despite the fact that Slovakia possesses a lower public debt than many other countries, its credit risk is rated as average within the EU. According to the survey, the likelihood of Slovakia's ending up like Greece by 2011, plagued with difficulties in financing the country's debt, is estimated at 26 percent.
KEA is a civil association with 33 members - economic analysts of commercial banks, NGOs, the Slovak Academy of Sciences, ministries, consulting firms and universities. A total of 13 KEA members took part in this latest survey.
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