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FinMin: Public Deficit to Exceed €5 Billion and Reach 7.8 Percent of GDP
Tuesday 31 August 2010 Zoom in | Print page
Bratislava, August 31 (TASR) - The deficit in public finances this year is currently estimated to reach 7.8 percent of GDP compared to the originally planned 5.5 percent, a Finance Ministry report on development of public finances indicates.
This means that the deficit will be €1.403 billion higher than the original estimate, and will reach €5.109 billion this year.
"In some respects, the deficit was increased by unexpected circumstances. However, a significant part of growth in deficit was also caused by off-the-mark preparations for the 2010 budget," said Finance Minister Ivan Miklos (SDKU-DS) in comments reflecting on the (mis)management of his predecessor Jan Pociatek (Smer-SD).
The budget passed in the autumn 2009 expected, for instance, a balanced fiscal management of the regional governments. Miklos thinks, however, that this estimate was unrealistic even at that time (in 2009). The deficit is adversely affected also by expenditures carried over from 2009, losses suffered by state-owned railroad companies due to the economic downturn, losses due to dubious sale of carbon dioxide emission quotas and this year's floods.
"Based on currently available information, the deficit is expected to go up by €647.8 this year," according to the report.
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