MFSR: Deficit at €6.1bn Last Year, Slightly Better Than Budget Estimates

Bratislava, 2 January (TASR) - The state budget deficit reached €6.109 billion as at the end of 2025, an improvement of €170 million when compared to the approved 2025 budget, which anticipated a deficit of €6.279 billion, the Finance Ministry reported on Friday based on the full-year 2025 budget balance on a cash basis. According to the ministry, the 2025 budget was prepared in the second half of 2024, when it wasn't possible to anticipate the negative economic impacts of trade wars, US tariffs, and negative trends in economies of Slovakia's largest trading partners. However, they were largely offset by significant cuts in state budget expenditures. "2025 was an exceptionally challenging year in terms of economic development. When we were preparing the 2025 budget, nobody could have predicted the consequences of the later decisions made by the US president. Trade wars, US tariffs and our largest trading partners - Germany and Austria - teetering on the brink of recession, all of this had a major impact on our economy," said Finance Minister Ladislav Kamenicky (Smer-SD). "Even though these factors mainly affected tax collection as well as Slovakia's economic growth, we've managed to stick to the approved budget and even perform better by tens of millions of euros," he added. By the end of December last year, according to the ministry, revenues came in at €27.254 billion, down €367 million when compared to the approved budget. Expenditures totalling €33.363 billion were also lower, by €537 million. Tax revenues reached a total of €20.654 billion, with VAT accounting for €10.713 billion, according to the ministry. On a cash-basis, last year's tax revenues were €1.799 billion lower compared to the approved budget, but this shortfall was almost entirely covered by reduced government spending (down by €1.388 billion), lower transfer to the social-security provider SP (€295 million), and a decline in debt servicing costs (€81.3 million). State budget revenues under the Recovery and Resilience Plan amounted to €1.97 billion last year, while revenues from the EU budget reached €2.408 billion, according to the Finance Ministry. jrg