Slovak Budget Goal Achievable Though Risks Remain, Council Says
Slovakia’s 2013 budget target is achievable unless the external environment worsens “significantly,” the country’s fiscal watchdog said.
Reserves included in the spending plan may not be sufficient should all risks to the economy materialize, the Fiscal Council, an independent body created this year to assess prospects for public finances and alert the public should they deteriorate, said on its website today.
The draft budget, which has yet to be approved by parliament, targets reducing the gap to 2.9 percent of gross domestic product next year from a targeted 4.6 percent in 2012.
The European Commission forecast today the economy of the second-poorest euro-area member is set to expand 2 percent next year, compared with 0.1 percent for the euro region. The European Union’s executive arm expects Slovakia to have a fiscal deficit of 4.9 percent of GDP this year and 3.2 percent in 2013, according to the forecasts.
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