Government abandons its ambitions to bring public finances to surplus

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Government abandons its ambitions to bring public finances to surplus

18. 04. 2019 13:22

Slovakia's Stability Programme for 2019-2022 assumes a zero deficit in the state budget, Prime Minister Peter Pellegrini (Smer-SD) stated at a press briefing on Wednesday.

"This programme continues to define our economy as balanced, which means that it assumes a zero deficit in the state budget. At the same time it guarantees and counts on another gradual lowering of our debt so that its net worth in 2022 will reach 37.1 percent of gross domestic product (GDP), which is under the safe boundary defined by the Council for Budgetary Security, " said the premier. According to the Council for Budgetary Security, the safe boundary for Slovakia is at 40-percent.

The Slovak Government will be sending the approved Stability Programme to Brussels this week. Pellegrini hopes that Eurostat will confirm that Slovakia had a deficit of only 0.7 percent of GDP in 2018.

The Stability Programme of Slovakia for 2019-2022, which was prepared by the Finance Ministry, expects the Slovak economy to slow down slightly in 2019. According to the Ministry, the unfavourable development of foreign demand will also be reflected in the export performance of the Slovak economy.

It is interesting to note, however, that if the government did not take any measures regarding the general budget for the upcoming years, and the parameters of this year's budget were maintained, Slovakia would achieve a surplus of 0.4 percent of GDP in the next year. Prime Minister Pellegrini admitted that the new stability program took a slight step back from the original plans on surplus budgets. At the same time, Pellegrini added that the figures presented should already include coalition proposals for measures and possible economic slowdowns.

Zuzana Botiková Foto: TASR

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