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Government Revises This Year's Budget. Deficit Reaching 7.84% of GDP
Wednesday 03 November 2010 Zoom in | Print page
Bratislava, November 3 (TASR) - Government on Wednesday passed an amendment to this year's State Budget Act that reckons on a significantly higher deficit. The Finance Ministry explains this by saying that parameters of the budget (passed by the previous Government) and the economic reality differ remarkably.
The public finance deficit for this year was planned to be 5.5 percent of GDP, which, according to the new management at the Finance Ministry, has turned out to be an unrealistic figure. The current estimate shows the deficit at 7.84 percent of GDP.
"This year's results have only served to prove that the state budget was compiled in a really bad way last year," said Finance Minister Ivan Miklos (SDKU-DS).
The revised state budget is being forwarded to Parliament for fast-tracking. Miklos says this is necessary because it had hitherto been impossible to estimate the state's actual revenues and expenditures for 2010.
It was mainly lower-than-expected tax revenues (€620.5 million less than estimated) that prompted the ministry to revise the budget.
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