The public budget deficit in 2020 will likely equal 6.75 percent of GDP or €6 billion, according the latest Budgetary Semaphore report drafted by the Budgetary Responsibility Council (KRRZ). The estimated deficit figure, however, was decreased from November expectations by 0.5 percentage points of GDP, or €445 million. "The decrease was caused mostly by a slower drawing of public budget expenditures, particularly lower capital expenditures, and revisions to pandemic-related expenditure estimations, including the purchase of medical material," reads the text.
"The most negative effect on the public administration budget balance is brought about by an expected drop in tax and levy income worth €1.9 billion (2.1 percent of GDP)," states the report. Government measures aimed at supporting the economy are currently projected at €1.4 billion (1.5 percent of GDP), working to increase the public deficit by €814 million. Additional expenditures worth €572 million are to be financed under the European Union's funds. Some risk to the budget also lies in the social transfers and benefits expenditures, which are expected to swell by €416 million, mostly due to an increased need for unemployment, welfare and sickness payments, as well as the so-called 13th pension.
