FinMin: Slovakia’s Public Finance Deficit in 2017 Lowest Ever

(Stock photo by TASR/AP)

Bratislava, April 23 (TASR) – Slovakia in 2017 posted its lowest annual public finance deficit ever, reaching a mere 1.04 percent of GDP, which was well below the Finance Ministry’s projected goal of 1.29 percent of GDP, the FinMin reported on Monday with reference to the Eurostat’s spring notification.

The Slovak economy was doing well last year, which allowed the Government to recover the public finances faster than planned.

“The public finance deficit at a level just above 1 percent means not only the lowest deficit ever, but also the first primary surplus [current state spending less current income from taxes, excluding interest paid on state debt],” stated the FinMin.

The developments were down to several factors, chiefly better-than-expected collection of levies due to a positive situation on the labour market.

“Among tax incomes, the best results were posted by VAT, with its additional contribution representing 1.35 percent of GDP compared to 2012. The overall tax income represented a cumulated €3.7 billion (4.3 percent of GDP),” reported the Finance Ministry.