General Government Deficit to Increase to 6.44 percent Next Year

General Government Deficit to Increase to 6.44 percent Next Year

Bratislava, October 14 (TASR) – Slovakia’s general government deficit is expected to rise to 6.44 percent of GDP next year from the expected 5 percent this year, according to the draft budget for 2023-2025 that was approved by the Government on Friday.

The deficit net of temporary effects next year is expected to reach 3.1 percent of GDP, which is close to the current year’s estimate of 2.9 percent. In the following two years, the deficit should gradually decline to 3.4 percent of GDP in 2024 and 2.7 percent in 2025.

Total general government revenues next year are projected to reach €50.579 billion, while expenditures should reach €58.451 billion, with a deficit of €7.9 billion. According to the draft, state-budget revenues will amount to €26.699 billion and expenditures to €35.041 billion, with a deficit of €8.3 billion.

In light of the energy crisis, the 2023 draft budget foresees spending on compensatory measures totalling €3.4 billion. Of this amount, the Economy Ministry will have at its disposal €1.4 billion, the Labour Ministry will obtain €900 million and the General Treasury Administration will get €940 million.

Even as of this year the Finance Ministry expects a decline in the total state debt, which is expected to fall to 59.4 percent of GDP after two years of growth from last year’s record 62.2 percent. Next year, the debt should fall below 58 percent of GDP. According to the ministry, this development will be significantly helped by high expected inflation as well as the use of accumulated liquid resources.