BRATISLAVA, October 6, (WEBNOVINY) – The draft state budget for next year is now ready to be debated in Parliament. On Wednesday, the Cabinet approved the draft state budget for next year with one objection. The objection concerns the Defense Ministry, whose budget should be increased by EUR 20 million, whereas EUR 10 million is to be secured by cutting expenditures for the debt service and EUR 10 million by increasing the expenditures of the state. The deficit of the state budget in 2011 is thus to reach EUR 3.8 billion. Total revenues are budgeted at EUR 13.1 billion and expenditures at EUR 16.9 billion. The deficit of the entire general government, which includes in addition to state institutions also budgets of health insurance companies, universities, self-governments, and the social security provider Socialna Poistovna, is to reach 4.9 percent of gross domestic product.
The previous government of Robert Fico projected budget revenues for this year at EUR 12.531 billion on expenditures of EUR 16.277 billion. The planned deficit was EUR 3.746 billion. However, given the real development, these plans will not be met and the state budget deficit will reach EUR 4.7 billion, according to the Finance Ministry. The ministry expects 2010 budget revenues at EUR 11.147 billion and expenditures at EUR 15.847 billion. General government deficit is to improve only mildly, from last year’s 7.9 percent of GDP to 7.8 percent.
The government’s draft state budget for next year and general government budget will be submitted for parliamentary debate without the support of social partners and in spite of criticism of the opposition. Former Finance Minister Jan Pociatek claims that the incumbent Cabinet has maximized the deficit estimate for this year to 7.81 percent of GDP (versus the initially projected 5.5 percent of GDP) because they failed to carry out any notable austerity measures. In his words, the aim is to push the deficit to the maximum to make the consolidation “look good” in a year-over-year comparison.
The Education Ministry will have the highest budget of EUR 1.9 billion among ministries next year. Thereof, more than EUR 410 million should be EU allocations. Another priority will be the Transport Ministry with a budget of EUR 1.3 billion, while EUR 600 million of this volume should come from the EU funds.
SITA