President Caputova Signs Changes in State Budget for This Year

President Caputova Signs Changes in State Budget for This Year

Bratislava, August 3 (TASR) – The state budget for this year is to be adjusted as President Zuzana Caputova signed on Monday an amendment to the law with changes adopted by Parliament at the beginning of July.

MPs discussed the draft budget in fast-track legislative proceedings.

The state deficit is set to increase by €9.2 billion and total state expenditure to rise by almost €7.8 billion. The Finance Ministry, which prepared the changes, responded to the impacts of the coronavirus outbreak, as well as shortfalls in tax and non-tax revenues. It also noted the need to provide funding for uncovered expenditure that wasn’t envisaged in this year’s budget.

The amendment to the state budget law takes into account a shortfall in both tax and non-tax revenues amounting to €1.4 billion. Total expenditure should go up by almost €7.8 billion for two reasons. The first is spending directly related to the coronavirus outbreak amounting to €4.9 billion, while the second is the need to provide funding for uncovered expenditure amounting to €2.9 billion. “Owing to these adjustments to income and expenditure, the deficit will deepen to €9.2 billion,” stated the Finance Ministry. Total state budget income should reach €14.4 billion (instead of the originally approved €15.8 billion), while expenditure should total €26.3 billion (instead of the original €18.5 billion). The state budget deficit should stand at €12 billion (instead of the originally budgeted €2.8 billion).

Concerning the increase in spending due to the coronavirus crisis, transfers for social-security provider Socialna poistovna should increase, as should funds for the Labour Ministry’s activities and expenditures on compensation for rental costs.
The amendment also creates the possibility to provide a guarantee to the Pan-European Guarantee Fund in response to the pandemic, from which the European Investment Bank and the European Investment Fund will be able to provide guarantees for financing and loans directly to final beneficiaries from the private and public sectors or via financial intermediaries.