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Parliament: Public Deficit to Reach 7.84 percent of GDP in 2010
Tuesday 30 November 2010 Zoom in | Print page
Bratislava, November 30 (TASR) - The public administration deficit will reach 7.84 percent of GDP in 2010, according to a revision of the state budget approved by Parliament on Tuesday.
The Finance Ministry, which drew up the revised budget, explains this by saying that parameters of the previous budget (passed by the former Government) and the economic reality differ remarkably. The public finance deficit for this year was originally forecast 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.
"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). He stressed that it is even more startling that the former Finance Ministry expected the growth of Slovakia's economy to be only at 1.9 percent this year, while the latest prognoses reckons on 4-percent growth.
The former government had to revise the 2009 budget deficit as well - from around €1 billion to more than €3.15 billion. This revision was due to the slump caused by the economic crisis and the costly measures the state had to use to combat the effects of the crisis.
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