RRZ Estimates This Year's Deficit at 5.1% of GDP, Thereby Exceeding Target

Bratislava, 28 November (TASR) - In its November fiscal 'traffic light' prognosis published on Friday, the Budgetary Responsibility Council (RRZ) estimated that the general government deficit should reach 5.1 percent of GDP, or €6.9 billion this year. The negative deviation from the budget target stands at 0.4 percent of GDP, which means a medium risk for implementing the approved budget. "RRZ increased the estimated level of the general government deficit for 2025 only minimally. The impact of changes on the balance when compared to the October prognosis has been neutralised, as higher expenditures on co-financing and in drawing funds by local governments have been compensated for by savings in the state budget and higher non-tax revenues," explained the council. This year's deficit forecast by RRZ is 0.1 percent of GDP higher than the current government estimate published in the approved budget for 2026-2028. "The most significant negative deviation in RRZ's estimate when compared to the targeted budget continues to be the shortfall in tax and levy revenues, especially lower expected revenues from value-added tax (VAT) and corporate tax. Two more F-16 fighters are expected to be delivered this year, with a possible delay in their delivery reducing the deficit this year but worsening the balance in 2026," stated RRZ. ko/df