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Finance Ministry: Public Finance Deficit to Reach 6.34% of GDP This Year
Wednesday 09 December 2009 Zoom in | Print page
Bratislava, December 9 (TASR) - Public finances should end this year with a deficit of 6.34 percent of GDP, according to a Report on Macroeconomic Environment and The Development of Public Finances After Three Quarters (of 2009) published by the Finance Ministry on Wednesday.
Three months ago, the ministry expected a slightly lower figure - a deficit of 6.29 percent of GDP. In the meantime, the Finance Ministry has refined estimates concerning public administration management, however. In comparison to its mid-year figures the ministry expects increased budget spending of €10.4 million, with state-funds spending up by €96.5 million, and Higher Territorial Unit (VUC) and village administration spending up by €15 million.
Conversely, health-insurance companies should enjoy a better revenues-spending ratio to the tune of €48.5 million, with that of state social-insurer Socialna Poistovania (SP) improving by €27.8 million.
"An estimated deficit in the public administration amounting to 6.3 percent of GDP is an appropriate figure in view of the current economic situation, and it stabilises the economy," states the report. The earlier estimated deficit has been exceeded mainly due to the implementation of automatic stabilising measures, lower growth in the economy and the introduction of anti-crisis measures adopted by the Government.
The Finance Ministry cautions that negative risks that might increase the deficit in future still exist.
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