RRZ Lowers Deficit Estimate for 2024 to 5.8 percent of GDP

Bratislava, March 28 (TASR) - The general government deficit could reach €7.483 billion, or 5.8 percent of GDP, this year, the Budgetary Responsibility Council (RRZ) has predicted in its latest estimate, reducing its deficit forecast by €133 million when compared to February. "The month-on-month improvement was mainly due to lower spending from the state budget and some public administration authorities, with the savings based on taking into account additional information on 2023 financial management," the council said. The positive deviation from the approved budget for this year amounts to 0.2 percent of GDP. The risk of missing the target is therefore low, according to the council. However, in contrast to the projected year-on-year decline in the deficit, the council estimated an increase in the deficit when compared to 2023. The highest downside risk to the budget is posed by measures to help with energy prices, as the reserve in the budget is insufficient to cover the total cost of compensation schemes. zel/df