Slovakia's public finance deficit should represent 1.98 percent of GDP in 2015, with a projection to gradually reduce it to 1.43 percent of GDP in 2016 according to a state budget draft approved by the Government on Wednesday. The draft will now be sent to Parliament and the European Commission for evaluation.
The total expenditures of the state budget in 2015 should represent €16.6 billion, which is some €750 million less than in 2014. The overall state budget income should reach €14.2 billion. The Finance Ministry believes that a continuing improvement on the labour market will lead to stabilisation in regards to household consumption next year. On the other hand, the consolidation of public finances will lead to a significant reduction in consumption of the public administration, the Ministry predicts. While the estimate concerning incomes from taxes as stipulated by the 2015 budget proposal is realistic, the budget expenditures could rise, claim analysts. Consequently, the final version of the budget may be approved with a higher deficit, said Slovenská Sporiteľňa analyst Maria Valachyova, adding that, nonetheless, the budget deficit shouldn't exceed 2.5 percent of GDP.
