BRATISLAVA, Oct. 5 (Xinhua) -- Slovakia's government expects the general government deficit to reach 4.94 percent of gross domestic product (GDP) in 2027, according to a draft budget plan approved on Monday.
General government revenues are expected to reach 63.34 billion euros (70.88 billion U.S. dollars) in 2027, while expenditures are projected at 70.79 billion euros (79.22 billion dollars), leaving a deficit of 7.44 billion euros (8.32 billion dollars).
According to the News Agency of the Slovak Republic, the projected deficit for 2027 is higher than the 4.37 percent of GDP currently expected for 2026. The 2026 budget had initially targeted a deficit of 4.1 percent of GDP.
The draft budget also includes 250 million euros (279.77 million dollars) to help offset high energy prices in 2027. Another 100 million euros (111.91 million dollars) has been allocated through the Agriculture Ministry to combat drought, improve water retention and mitigate the effects of climate change.
A further 482 million euros (539.40 million dollars) has been set aside to cover the impact of planned legislative changes, mainly in the social and family policy sectors. These include assistance for people in need, social service reform, an increased allowance for first-graders and a childbirth allowance.
The Finance Ministry said that, given the challenging economic conditions, it would take several electoral terms to halt the growth of Slovakia's public debt. Fiscal consolidation is helping contain the increase in debt, but bringing debt growth to a complete halt would require reducing the overall budget deficit to well below 3 percent of GDP, the ministry said.
