Government Approves Draft Budget with Deficit Standing at 4.94 percent of GDP

Bratislava, 5 October (TASR) - General government revenues should reach €63.343 billion in 2027, or 42.04 percent of GDP, while expenditures should amount to €70.786 billion, or 46.98 percent of GDP, resulting in a deficit of €7.443 billion, or 4.94 percent of GDP, according to the draft budget for 2027 to 2029, approved by the government at its session on Monday. The budget hasn't be discussed by Parliament yet. According to statements by several coalition representatives, this could happen during the ongoing session or, alternatively, at a special House session. The deficit budgeted for next year is higher than this year's, which was initially planned at 4.1 percent and is currently expected to reach 4.37 percent of GDP. Over the following two years, the deficit should gradually decline to 4.5 percent and to 4 percent of GDP, but this will require additional consolidation measures. "Under the budget currently in place, this strategy will require measures worth 0.8 percent of GDP in 2028 and 1.4 percent of GDP in 2029," said the ministry. Without this, the deficit will continue to rise to 5.26 percent of GDP and then 5.41 percent of GDP. Revenues of the state budget itself are projected at €27.911 billion, with expenditures at €35.666 billion for 2027. The state budget deficit should thus reach €7.754 billion. The draft budget counts on, among other things, continued measures to offset high energy prices in 2027, with €250 million allocated for this purpose. Meanwhile, an amount of €100 million has been allocated from the Agriculture Ministry's budget chapter to combat drought, retain water on the land and address the effects of climate change. The budget also counts on expenditures to cover planned legislative changes totalling €482 million. "This money is intended to cover the impact of measures in the social sector and pro-family policies, in particular allowances to help those in need and a reform of social services. Within this, the budget also covers one-off forms of aid, such as an increased allowance for first-graders and a childbirth contribution," said the Finance Ministry. Given the challenging economic conditions, halting growth in public debt will take several electoral terms, stated the Finance Ministry. Fiscal consolidation is curbing the growth of debt, but bringing it to a complete halt will require reducing the overall budget deficit to well below 3 percent of GDP, it added. ko/df