The deficit estimate for 2023 decreased to the level of EUR 6.8 billion due to lower expenditures associated with Russian aggression in Ukraine (Budgetary Traffic Light October 2023)

  • 27. 10. 2023

Secretariat of the Council for Budget Responsibility (SoCBR) estimates the 2023 General Government Budget (GGB) deficit at 5.6 % of GDP

• SoCBR has decreased the estimated level of GGB deficit in 2023. The positive difference compared to the September forecast amounts to EUR 202 million. Under the assumption that the government does not take additional measures, the deficit can reach the amount of EUR 6 772 million (5.6 % of GDP). Month-to-month decrease of the GG deficit level is mainly due to exclusion from the deficit of expenditure associated with military equipment financed by NATO member states. This revision is a result of methodology change by the Statistical office of the Slovak republic carried out in the autumn EDP notification.

• Estimated deviation between the SoCBR’s forecast for the 2023 GGB balance and the approved budget is positive at 0.8 % of GDP, which means that the risk of the public deficit level rising above the government objective remains low.

• According to the Draft Budgetary Plan for 2024-2026 approved by the previous government, the expected level of deficit in 2023 amounts to EUR 7 550 million (6.2 % of GDP), thus exceeding the SoCBR’s forecast by 0.6 % of GDP.

• Expected expenditures of government measures to compensate high energy prices reach the level of EUR 2 876 million (2.4 % of GDP), of which expenses in the amount of EUR 1 074 million (0.9 % of GDP) should be financed from EU funds. After considering budgeted reserve, revenue from the windfall taxation of petroleum companies and electricity production companies is the overall budgetary impact of measures lower than budgeted level in the amount of EUR 1 536 million (1.3 % of GDP).