Slovakia's Budget Deficit Passes 4 Billion Euros by September
The Finance Ministry reported a cash deficit of 4.087 billion euros for the first nine months of the year, with spending on debt service, EU funds and recovery-plan projects rising faster than record tax income.
Slovakia's state budget deficit reportedly reached 4.087 billion euros by September, widening 8.2% year-on-year despite higher tax revenues.
- Deficit reached 4.087 billion euros by end of September, per Finance Ministry data
- Deficit worsened year-on-year by 310 million euros (8.2%)
- VAT revenues rose 867 million euros; debt service costs rose 404 million euros
- Expenditures rose 1.747 billion euros to 23.475 billion euros
What's new
- Finance Ministry data published Thursday show the deficit widening year-on-year by 310 million euros (8.2%)
- State debt service costs rose 404 million euros (36.6%), and Recovery and Resilience Plan spending climbed 743 million euros (66.1%)
- Tax revenues, led by VAT, rose sharply, but expenditure growth outpaced income
- TREND reported the same Finance Ministry figures on the deficit
Slovakia's state budget deficit reached 4.087 billion euros by the end of September, according to Finance Ministry data reported on Thursday, as spending on debt service, EU-related programmes and the Recovery and Resilience Plan grew faster than tax revenues.1234
Deficit widens despite revenue growth
The ministry said the budget's cash position worsened year-on-year by 310 million euros, or 8.2%, even though state revenues increased by 1.437 billion euros, or 8%, to 19.388 billion euros, according to the reported figures. Tax collection rose by 1.303 billion euros, or 8.7%, with the ministry describing a positive year-on-year trend across almost all tax categories.1234
Value-added tax revenue increased by 867 million euros year-on-year. Corporate income tax revenue is reported to have risen by 351 million euros, according to the ministry's figures, alongside smaller increases in excise tax, insurance tax, financial transaction tax and personal income tax.1234
Spending outpaces income
Overall state budget expenditure rose by 1.747 billion euros, or 8%, to 23.475 billion euros. Higher spending on debt service, EU funds and the Recovery and Resilience Plan was cited as the main driver of the deteriorating budget balance.123
State debt service expenditure increased by 404 million euros, or 36.6%, year-on-year. Spending tied to the Recovery and Resilience Plan is reported to have grown by 743 million euros, or 66.1%, while EU budget-related expenditure rose by 443 million euros, or 36.3%.1234
On the revenue side, EU budget funds are reported to have increased by 85 million euros, or 6.9%, while Recovery and Resilience Plan funds rose by 42 million euros, or 6.7%. At the same time, some revenue streams declined: the special levy on regulated sectors fell by 169 million euros and the solidarity contribution from energy sectors dropped by 42 million euros. The transfer from the Social Insurance Company to the state budget decreased by 447 million euros, or 33.1%.14
Confirmation and remaining gaps
TREND reported the same Finance Ministry data confirming that the deficit had surpassed 4 billion euros in September, though this account relied on a single source in the dossier.5
Why it matters
A widening deficit driven by rising debt service costs signals growing pressure on Slovakia's public finances, a concern for readers across the euro area given shared fiscal rules and borrowing conditions.23
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