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

Slovakia's car industry facing strike at Kia, unrest at Peugeot

Workers at Kia Motors Slovakia have officially been on strike alert since April 10, a day before Skoda Auto in neighbouring Czechia ... more

Finland gives final nod to construction of Nord Stream II

Finland has issued a second and final permit for the construction of the controversial Nord Stream II pipeline that is to pump gas from Russia directly to Germany via a Baltic Sea route, the Regional ... more

Slovak president appoints cabinet headed by Peter Pellegrini

Slovak President Andrej Kiska appointed Peter Pellegrini of the ruling Smer-SD party to the ... more

Dismiss