Budget Deficit Expected to Rise to 4.94 percent of GDP Next Year

Bratislava, 4 October (TASR) - The public finance deficit is set to reach 4.94 percent of gross domestic product (GDP) next year, and will be thus higher than this year's deficit, which was originally planned at 4.1 percent; the current forecast stands at 4.37 percent of GDP, according to the draft general government budget for 2027-2029, which the Finance Ministry is to present at the meeting of the Economic and Social Council on Monday (5 October). In subsequent years, the deficit is expected to fall gradually to 4.5 percent and 4 percent of GDP, although this will require additional consolidation measures. The government is also due to discuss the draft on its session on Monday. The ministry stated that the budget envisages a return to consolidation efforts in the coming years, with the aim of gradually reducing the deficit to 4 percent of GDP. "According to the current budget, such a strategy will require measures amounting to 0.8 percent of GDP in 2028 and 1.4 percent of GDP in 2029," it stated. Without these measures, the deficit would continue to rise to 5.26 percent of GDP in 2028 and 5.41 percent of GDP in 2029. According to the budget, general government revenue is expected to reach €63.343 billion, or 42.04 percent of GDP, next year. Public expenditure is projected to amount to €70.786 billion, or 46.98 percent of GDP. This is expected to result in a deficit of €7.443 billion, or 4.94 percent of GDP. The central government budget itself forecasts total revenue of €27.911 billion and expenditure of €35.666 billion for 2027. The central government's budget is therefore expected to show a deficit of €7.754 billion. am