The reduction of budgeted government deficit by 0.2 percent of Gross Domestic Product (GDP) for 2014 compared to the original draft budget will not lead to improved budgetary performance.
The government’s Council for Budget Responsibility contends this in its evaluation of the budget for the years 2014 to 2016. The reason given is due to the size of one-off and temporary measures, which according to the Council, rose to 1.7 percent of GDP. The Council advises that the approved budget for this 3 year period “Harms the long-term sustainability of public finances because of increased structural deficit. The target for 2014 itself is achievable, but only under the condition that revenue from one-off measures is achieved,” Says the Council for Budgetary Responsibility. It must be added that the Slovak Parliament approved the state budget for 2014 last week.
