RRZ in May Increases Deficit Estimate for This Year to 5 percent of GDP

Bratislava, May 30 (TASR) - If the government fails to adopt any additional measures, Slovakia's general government deficit will equal 5 percent of GDP, or €6.9 billion this year, with the negative divergence from the budgetary target reaching 0.3 percent of GDP, the Budgetary Responsibility Council (RRZ) has stated in its latest (May) budgetary projection, which was published on Friday. The council increased its estimate of the general government budget by 0.1 percent of GDP, or €145 million when compared to the April projection. The increase can mainly be ascribed to the cost of the approved construction of a new national hospital and higher interest-rate costs. "RRZ's most significant negative deviation from the approved budget is the shortfall in tax and levy revenues, especially lower expected revenue from value added tax (VAT) and corporate tax," stated the council. The council pointed out that its 2025 deficit forecast is 0.1 percent of GDP higher than the government's latest estimate, published in the April Annual Progress Report. This is mainly due to higher than expected drawing of capital expenditures in the state budget. ko/df