Slovakia’s FinMin sees 2015 budget gap narrowing to 2.49% of GDP on higher tax revenue

By bne IntelliNews April 22, 2014

Slovakia’s finance ministry has projected that the budget deficit will shrink further in 2015 to 2.49% of the GDP from an estimated 2.64% this year thanks to expected higher tax revenue and improving economic environment, according to a draft budget framework for 2015-2017 that is to be approved by the government on April 23. The document, posted on the government's website, sees the deficit at 1.61% in 2016 and at 0.54% in 2017.

The finance ministry expects the tax and contribution income to increase to EUR 20.6bn in 2015 from EUR 20.16bn estimated for 2014. The revenue should further go up to EUR 21.47bn in 2016 and to EUR 22.42bn in 2017.

According to the winter edition of the European Commission’s forecast, Slovakia’s budget deficit is expected to reach 3.3% of the GDP in 2014 from an estimated 2.5% in 2013. The GDP is expected to expand by 2.3% in 2014 and further speed up to 3.2% in 2015 supported improving domestic demand.

According to the draft framework, the GDP growth is expected to accelerate to 3% next year from 2.3% projected for 2014 and further gain speed to 3.2% in 2016 and to 3.4% in 2017, in line with the EC’s forecast.

Slovakia's unemployment rate is seen falling to 13.2% in 2015 from 14% estimated for 2014. The rate should continue retreating to 12.3% and to 11.3% in the next two years. At the same time, the employment level is projected to increase by 0.6%, 0.7% and 0.9%, respectively, in the next three years, compared to an estimated growth of 0.3% in 2014.

Slovakia's jobless rate is one of the highest in Europe but local analysts expect it to stabilise and slightly decrease in 2014 supported by stronger economic activity. The unemployment rate edged down to 13.49% in February 2014 from 13.61% the month before, according to the latest available data from the Centre for Labour, Social Affairs and Family.

Related Articles

Poland isolated again as it threatens to block EU declaration

Poland will not sign the Rome Declaration if its demands for moulding the EU’s future are not reflected in the document, Prime Minister Beata Szydlo threatened on March 23. The statement could ... more

EU asks CEE to comment on Russian gas promises

The European Commission has invited comments from Central & Eastern European states on proposals put forward by Russian gas giant Gazprom to meet competition concerns. Visegrad and the Baltic ... more

Poland struggles in bid to oust Tusk

The Polish government spent March 6 canvassing for support for its alternative candidate for the European Council presidency to compatriot Donald Tusk. However, it met little success, even in its own ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss