Government approves 2016 budget; deficit to fall below 2 percent

The public finance deficit should reach 1.93 percent of gross domestic product (GDP) in 2016 and should gradually decrease over the next few years, with 2018 being the year in which a balanced budget will be achieved, according to the current budget draft for 2016-18 approved by the Government on Wednesday. The budget deficit should reach €1.557 billion. Revenues are estimated at €30.428 billion and expenditures at €31.985 billion. The budget envisages a cut in the total state debt to 52.1 percent of GDP. The state budget's cash shortfall in 2016 should reach €1.97 billion, with revenues amounting to €14.027 billion and expenditures to €15.997 billion. The Finance Ministry has also taken into account measures stemming from the Government's social packages as well as other changes in legislation when drafting the budget. It factored in 4-percent salary increases in public and state administration. It also included two new reserves - one for significant investments and the other for expenditures connected to addressing the migrant crisis. As part of the approved budget, the minimum wage in Slovakia will also increase from the current €380 per month to €405 from the beginning of next year; an increase of 6.58 percent.