RRZ: 2026 Deficit Estimate Falls To €6.1 bn or 4.3 percent of GDP

Bratislava, 1 April (TASR) - Slovakia's general government deficit is expected to reach 4.3 percent of GDP (or €6.1 billion) this year if the government takes no additional measures, according to an estimate published by the Council for Budgetary Responsibility in its March budgetary 'traffic light' prognosis. The negative deviation from the budget target stands at 0.2 percent of GDP (€327 million), implying a medium risk for meeting the approved budget. "Compared to the February forecast, the expected deficit has declined by €237 million, primarily due to better financial performance of other general government entities and lower state budget investments based on developments in 2025," explained RRZ. The most significant negative deviation in the estimate compared to the budget has been caused by a shortfall in tax and levy revenues of 0.5 percent of GDP, or €774 million. This is mainly due to lower-than-expected revenues from value-added tax (VAT) and corporate tax. "The shortfall is primarily due to less favourable economic developments when compared to budgetary assumptions. Slower growth in household consumption reduces VAT revenue, and lower minimum wages are pushing down levy revenues and labour-related taxes," added RRZ. Conversely, the most significant positive impact on the general government balance when compared to the budget comes from the improved performance of other entities, in particular transport companies and public universities. jrg/df