Government Approves Budget for 2020; Deficit to Stand at 0.49 percent of GDP

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(Stock photo by TASR)

Bratislava, October 14 (TASR) – The Government on Monday approved a draft budget drawn up by the Finance Ministry for upcoming years, according to which the general government deficit in 2020 should stand at 0.49 percent of GDP and at the same time admitted that the original goal of a balanced state budget for 2019 won’t be reached as the general government deficit should stand at 0.68 percent of GDP.

Total income of the public sector for 2020 is budgeted at the level of €38.87 billion while total expenditure should stand at €39.35 billion, meaning that there should be a deficit of €480 million. The state budget is expected to manage a cash deficit of €2.68 billion. Total state income is projected to reach the level of €15.89 billion; and expenditure should be €18.57 billion.

It’s expected that a balanced state budget will be feasible as of 2021.

“We’ll send the general government budget to Brussels for an assessment as we do every year in the form of  a draft budgetary plan, which is actually an analytical view on the budget. The Finance Ministry communicates and will communicate with the European Commission about these documents,” stated Finance Minister Ladislav Kamenicky (Smer-SD). In early November, the European Commission will issue its regular prognosis  based on which it will assess the budgets of all EU-member countries.

The growth of the Slovak economy should slow down this year to 2.4 percent of GDP chiefly due to a weaker performance of the eurozone.  “The lukewarm growth of the economy will continue in 2020, the growth in GDP will stand at 2.3 percent,” stated the Finance Ministry, adding that the employment rate should remain the same. The average nominal salary next year should increase by 4.7 percent to €1,139.