Slovak News Back to the news
IMF: Slovakia's Deficit at 7-8 % This Year; Cuts Necessary Next Year
Monday 19 July 2010 Zoom in | Print page
Bratislava, July 19 (TASR) - The International Monetary Fund (IMF) estimates that Slovakia's public finance deficit will reach 7-8 percent of GDP this year. In order to reduce it gradually to 3 percent in 2013, the deficit will have to be cut by 2.5 percent of GDP next year, according to leader of the IMF mission in Slovakia Mark de Broeck.
Finance Minister Ivan Miklos agrees with the IMF's projection, noting that the necessary cuts may actually total €1.66 billion. "It's a sort of recovery that shouldn't undercut economic growth on one hand, but should allow us to achieve that 3 percent in 2013 on the other," he said.
According to Miklos, in order to make this happen, the Government will have to pass measures on both sides of the budget - in incomes and expenditures. He was reluctant to give any further details for the moment, however.
Slovakia's public finances have deteriorated dramatically over the past few years, especially due to slumps in tax incomes, said Broeck. The IMF therefore recommends that Slovakia goes the extra mile in consolidating its public money over the next few years, including by setting new expenditure ceilings in the budget, for example. Miklos conceded that his ministry may actually introduce such measures.
The IMF thinks that the prospects for Slovakia's economy are relatively positive, however. The Fund estimates that this year's growth will reach 4 percent, while Slovakia's financial authorities are taking a more conservative approach in their official prognoses. The Finance Ministry expects the economy to grow by 3.2 percent, while Slovakia's central bank (NBS) is slightly more optimistic, projecting growth to reach 3.7 percent.
All rights reserved. Any publishing or further dissemination of press releases and photographs from TASR's resources without TASR's prior written approval constitutes a violation of the Copyrights Act.
