BRATISLAVA, August 6, (WEBNOVINY) – This year’s general government deficit will increase also due to the missing revenues from the sale of emission allowance. The approved budget was calculated with revenues of the Environmental Fund from sale of emissions in the amount of EUR 66 million; however, it will not be realized this year, according to Ministry of Agriculture, Environment and Regional Development. „Or it will be realized at the end of 2010, and the financial transactions will take place just in 2011,“ the ministry said.
Therefore, the head of the department Zsolt Simon submitted a proposal to next week’s Cabinet meeting to reduce the revenue budget of the Environmental Fund by EUR 66 million. Since the change in the fund’s budget on the side of revenues has a negative impact on the general government budget deficit, it is necessary that the change in the budget is submitted to the Cabinet for approval.
The missing revenues from the sale of emission allowances will be another item that will negatively affect the public finances deficit this year. However, the most crucial one was the update of tax and contribution revenues, according to which the public administration will collect about EUR 1 billion less from taxes and contributions than anticipated in the approved budget. There still remain other invoices that are not covered by the budget; they are for performances in the public interest in railway transport or missing resources for social benefits, according to Finance Minister Ivan Miklos.
The previous government approved a general government’s deficit at 5.5 percent of GDP for this year. Shortly before the elections, former Finance Minister Jan Pociatek admitted that the deficit could eventually climb to 7 percent of GDP due to a shortfall in tax revenues. The International Monetary Fund estimates Slovakia’s deficit of 7 to 8 percent of GDP for this year. New finance minister Miklos promises radical consolidation measures in 2011 when the deficit should be reduced by 2.5 percentage points.
SITA