Against the government’s approved budget amendment for this year, the deficit is less than K60 billion.
The state budget has to deal with a number of prices in the form of aid to the defense and companies and external spending on the defense of the country and the necessary supply of energy. At the same time, however, we do not want to resign ourselves to a return to fiscal discipline, said Finance Minister Zbynk Stanjura.
Budget proposal against the budget with revenues increased by 136.3 billion. However, more money should come from VAT, due to expected economic growth and increased consumer prices. You also collect personal and natural person income taxes, as well as consumption taxes.
According to the parties, the main changes are roughly 104 billion in expenditures for the Department of Labor and Social Security, due to unusual valorization of income and growing social debts. 21 billion more for the modernization of the army.
The stairs should go down
In the medium-term view, the Ministry of Finance proposes a budget deficit of K250 billion for 2024 and K230 billion in 2025.
Although the dream budget deficit is not as fast as we imagined before the crisis, it does not change our clear pre-election promise to reduce the public finance deficit to below two percent of GDP.
According to the latest forecasts of the Ministry of Finance, the deficit of public finances should reach 3.8 percent of GDP in the fifth year and in the following years decrease to 2.6 percent in 2024, respectively and to 2.3 percent of GDP at the end of the election period in 2025.
The government will deal with the proposal in its entirety, as the launch parameters may change. The Cabinet must approve and send it to the House of Representatives by the 30th.