RRZ Estimates Deficit to Reach 5.8 Percent of GDP This Year

Bratislava, November 29 (TASR) - The Budgetary Responsibility Council (RRZ) in November estimated that the public deficit could reach €7.58 billion, or 5.8 percent of GDP, this year. There was only a slight downward correction compared to last month. "Compared to the October forecast, the deficit fell by €39 million. The month-on-month improvement in the economy can be ascribed to lower expected expenditures on the European Union levy. Meanwhile, the negative impact can be ascribed to the social security provider Socialna poistovna's pension expenditures," the RRZ explained. The divergence from the approved budget for this year thus remains positive and currently stands at 0.2 percent of GDP, meaning the risk of not achieving the budget target is low. However, in contrast to the projected 0.5 (p.p.) of GDP year-on-year decline in the deficit, the RRZ estimated a 0.6 p.p. of GDP increase in the deficit when compared to 2023, an annual increase of €1.2 billion. lin/mcs/mf