The state budget for the year 2020 will be adjusted, with President Zuzana Čaputová on Monday signing an amendment to the law incorporating changes adopted by Parliament in fast-track legislative proceedings at the beginning of July. 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, was responding to the economic impact of the coronavirus outbreak, as well as shortfalls in tax and non-tax revenues. The ministry also noted the need to provide funding for uncovered expenditures that weren't envisaged in this year's budget. Concerning the increase in spending due to the coronavirus crisis, transfers to social-security provider Sociálna poisťovňa 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.
Meanwhile, the state budget recorded a deficit of €3.8 billion as of the end of July, an increase of €1.427 billion year-on-year. This stems from a Finance Ministry report on the state budget for July 2020 released on Monday. State budget income decreased by €756 million y-o-y to the end of July, while expenditure went up by €1.65 billion y-o-y.
