Slovakia's budget gap widens 40.9% y/y to EUR 1.5bn at end-April 2014

By bne IntelliNews May 5, 2014

Slovakia's state budget deficit widened by 40.9% y/y to EUR 1.516bn at the end of April 2014 as expenditure rose faster than the revenue, data from the finance ministry showed on May 2. The reading accounted for 46.2% of the full-year target and equalled to 1.7% of the projected full-year GDP, according to IntelliNews calculations.

Budget revenue inched up by 0.8% y/y to EUR 3.46bn as of end-April compared to a 8.8% annual rise at the end of March. The weaker growth came as tax revenue, which is the main source of budget income, declined by 1.7% y/y. Non-tax revenue, on the other hand, jumped 158% on the year to EUR 554mn. Budget expenditure rose 10.4% y/y to EUR 4.97bn in the first four months of 2014.

The Slovak government targets an end-2014 budget deficit of EUR 3.28bn, based on revenue of EUR 14.1bn and expenditure of EUR 17.39bn. The budget gap is projected to shrink to 2.64% of GDP, below the EU's 3.0% of GDP ceiling. The shortfall is aimed to be cut further to 2.49% of GDP in 2015, to 1.61% in 2016 and to 0.54% in 2017.

The European Commission launched the excessive deficit procedure against Slovakia in 2009. The EDP is a step-by-step procedure for correcting excessive deficits that occur when one or both of the rules that the deficit must not exceed 3% of GDP and public debt must not exceed 60% of GDP are breached.

In its semi-annual report to the European Commission, the Slovak statistics office estimated that the general government deficit fell to 2.77% of GDP in 2013 from 4.48% a year earlier.


thousands EUR end-Apr 2014 end-Apr 2013 end-2014 target y/y change % of target
REVENUE 3,457,684 3,428,550 14,108,312 0.8% 24.5%
--tax revenue 2,786,327 2,834,755 8,690,538 -1.7% 32.1%
--non-tax revenue 554,374 215,319 1,397,769 157.5% 39.7%
--grants and transfers 116,983 378,476 4,020,005 -69.1% 2.9%
----receipts from EU budget 109,369 371,874 3,173,198 -70.6% 3.4%
EXPENDITURE 4,973,932 4,504,643 17,391,917 10.4% 28.6%
--current expenditure 4,642,363 4,203,185 14,863,248 10.4% 31.2%
--capital expenditure 331,569 301,458 2,528,669 10.0% 13.1%
BALANCE -1,516,248 -1,076,093 -3,283,605 40.9% 46.2%
Source: Ministry of Finance of the Slovak Republic      

Related Articles

Evolution Equity Partners closes $125mn cybersecurity-focused fund

Evolution Equity Partners announced on 17 July the final closing of a new fund with total capital commitments of $125mn to make investments in cybersecurity and next generation enterprise software ... more

Slovak celebration of decent grain harvest marred by sheep’s milk protest

Slovakia’s grain harvest is this year likely to amount to 2.5mn tonnes, 20% down year on year, but comfortably enough to cover domestic needs and leave a million tonnes for export, SITA newswire ... more

Central European and Baltic economies shrugging off political uncertainty

Medium-term economic growth forecasts for Central Europe and the Baltics have been raised by The Vienna Institute for International Economic Studies (wiiw) in a report issued on June 29. The most ... more