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Government Approves Budget Proposal and Ready to Submit Itt
Wednesday 06 Octtber 2010 Zoom in | Print page
Bratislava, October 6 (TASR) - The Government at its session on Wednesday approved the legislative proposal on the state budget for 2011, as well as the public administration budget for the next three years.
The Government now has to submit the proposal to Parliament by October 15.
According to the document prepared by the Finance Ministry, the overall state revenues should reach €13.1 billion next year while expenses are estimated at €16.9 billion, representing a deficit of €3.8 billion.
The overall deficit of the state administration should decrease next year to €3.4 billion from this year's €5.1 billion, with revenues reaching €23.3 billion and expenses €26.7 billion.
The public finances deficit should be falling gradually from the 7.8 percent of GDP reported this year to 4.9 percent in 2011 and 3.8 percent in 2012. In 2013, the state deficit should be pushed under the 3-percent threshold required by the EU budgetary rules and is estimated to reach 2.9 percent of GDP.
In order to cut the deficit, the Government has prepared a package of consolidation measures worth €1.75 billion. The money should be ensured via saving on the side of expenditures equalling €980 million and raising revenues by €770 million.
"The fact is that this budget proposal carries considerable uncertainties," conceded the Finance Ministry. They result from the risks linked to the expected development of the global economy, uncertain real level of this year's deficit, as well as the effects of various austerity measures on revenues and expenditures in public finances.
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