The public finance deficit is forecast to reach 2.29 percent of GDP next year instead of the initially predicted figure of 1.98 percent of GDP, according to an amendment to the state budget draft for 2015 as okayed by Parliament's finance and budget committee.
"If all the amending proposals are indeed approved by the chamber, the deficit will increase. We've also agreed to earmark a reserve of 0.2 percent of GDP to cover risks in macroeconomic developments, because we're sensing these in developments in economies that are our key partners in the eurozone and the European Union as well as in the continued geopolitical conflict to the east of our borders”, said Finance Minister Peter Kažimír. Parliament is to discuss the budget draft in the next few days. The proposals regard an increase in cash expenditures of €300 million, with the levy reform accounting for €165 million of the total. Close to €100 million is represented by a reserve towards the outcomes of collective bargaining, which includes an expected rise of 5 percent in the salaries of education sector employees. Slovakia is also set to discuss the draft with European Commission representatives in the weeks ahead.
