Budget Deficit Rising in Line With Plan

According to figures released yesterday, the state budget deficit rose by over half a billion euro from April to May, going from EUR 1.019 billion to EUR 1.567 billion. The growth seen this year is in line with projections, says spokesman for the Ministry of Finance, Martin Jaros.

Finance minister Ivan Miklos (c) The Daily

Even so, this is still 24.6% down on the figures for May 2010 when the deficit was EUR 2.078 billion (something nobody knew as the figures were held back by finance minister at the time Jan Pociatek as it was right before the elections).

This upward trend is set to continue, with projections calculating with a deficit of around EUR 3.8 billion by the end of the year. Although budget revenues were up 11.1% year-on-year (thanks also to 7.6% more tax receipts), at present they come to just 33% of the year’s projection, with five months passed already.

Expenditures were down slightly by 1.2%, helped also by improved drawing of eurofunds by almost one fifth compared to last year. A new set of forecasts should be published by the Ministry of Finance in July.

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