Slovakia’s state budget recorded a cash deficit of €3.777 billion by the end of September, marking a year-on-year deterioration of €1.1 billion (41%), while inflation accelerated to 4.6% in the same month, placing the country alongside Croatia as the second-highest in the eurozone after Estonia, according to Eurostat data and the Ministry of Finance (MF) of the Slovak Republic.
Budget revenues increased by €1.059 billion (6.3%) to €17.951 billion, while expenditures rose even more sharply by €2.156 billion (11%) to €21.728 billion. Tax revenues grew by €1.646 billion (12.4%), with positive contributions from value-added tax (€607.5 million), corporate income tax (€216.3 million), excise duties (€92.4 million), withholding taxes (€17.3 million), and personal income tax (€405.5 million). Additional revenue sources included €207.9 million from the financial transactions tax, a higher special levy on regulated sectors (€53.1 million), and a solidarity contribution from the oil, gas, coal, and refinery sectors (€39.6 million). Meanwhile, EU budget revenues fell by €1.218 billion (-49.6%) due to delays in payments from the 2014–2020 program period, while Recovery and Resilience Plan funds contributed €626.4 million. Dividend revenues also rose by €13.9 million (13.5%). On the expenditure side, spending related to EU funds fell by €837.1 million (-40.7%), while outlays tied to the Recovery and Resilience Plan surged by €840.2 million (+296.9%). Transfers to the Social Insurance Agency decreased by €250 million (-15.6%).
At the same time, Slovakia’s inflationary pressures are intensifying. CSOB chief economist Marek Gábriš highlighted that “Slovakia has consistently ranked among the top three in this unfavorable statistic,” noting that food inflation slowed slightly from 4.3% to 4% but remains above the eurozone average of 3%. Rising costs in services and energy further contributed to inflation, with services prices accelerating to 7.9% due to labor shortages and wage pressures, while energy prices rose 0.4% month-on-month and 1.6% year-on-year, marking the fastest energy inflation since January 2024. Eurozone inflation also edged up to 2.2%, with countries such as Germany (2.4%), the Netherlands (3%), and Spain (3%) experiencing higher price growth.
Together, the data indicate that Slovakia is facing a challenging economic environment, with rising inflation, increasing expenditure pressures, and a widening budget deficit, highlighting the need for careful fiscal and monetary policy management in the coming months.
Source: TASR
