Budget Council Raises 2025 Deficit Forecast by €50 mn to 5.2 percent of GDP

Bratislava, 28 August (TASR) – The Council for Budget Responsibility (RRZ) has increased its projected state budget deficit for 2025 to €7.1 billion or 5.2 percent of gross domestic product (GDP), according to its August fiscal 'traffic light' report. This represents a €50-million increase from its July forecast, equivalent to 0.1 percent of GDP. The upward revision is primarily due to worsening financial performance among state-funded organisations and public transport companies, as well as lower-than-expected tax revenues. Conversely, reduced current government spending is helping to offset the deficit somewhat. The most significant negative deviation from the budget remains the persistent shortfall in expected revenues from taxes and social contributions, amounting to nearly €1.1 billion, RRZ noted. Looking ahead to 2025, RRZ expects public expenditures subject to the spending cap to reach €61.1 billion, suggesting that the spending limit approved by Parliament won't be breached. However, the council warned that the main risk to meeting fiscal targets lies on the revenue side unless the government implements additional corrective measures. mf/df