Balanced state budget in danger

Slovakia will most likely not achieve a balanced state budget in 2019 as planned, warned the National Bank of Slovakia, the European Commission as well as the Council for budget responsibility (RRZ). The RRZ expects the deficit of public finances to be at level of 0.93% of the gross domestic product. "We voiced our disagreement regarding overrated non-tax incomes at the moment of the approval of the budget. We saw the approval of a balanced state budget as a political response to public demand rather than as a real effort for responsible financial policy," said Radovan Ďurana of the Institute of Economic and Social Studies. In spite of the criticism, the Finance Ministry is optimistic, expecting the state budget to become balanced in the coming years. Nevertheless, it is aware of risks such as the slowing down of the Eurozone's economy, a hard Brexit with no agreement and growing protectionism in the international business.