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      

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