The General government deficit of the SR in 2023 represented 5.21% of GDP, this result was worse than the initial spring estimate

The General government deficit of the Slovak Republic in 2023 amounted to EUR 6.4 billion. Its value compared to 2022 tripled and slightly increased by EUR 0.4 billion even compared to the first estimate from April of this year. After the refinements, tax revenues decreased and selected state expenditures increased. The total General government debt reached EUR 68.9 billion, which was 56.1% of GDP.

The total General government deficit in 2023 reached EUR 6.4 billion, which represented 5.21% of the Gross Domestic Product (GDP) of the Slovak Republic. Compared to the first estimate from the spring (the so-called spring EDP notification), it was a deterioration of almost EUR 400 million. The spring deficit was calculated at 4.89% of GDP.

The fall result was also influenced by the so-called major benchmark revision¹⁾ of GDP data in the entire time series since 1995, which the SO SR already published last week. The increase in the deficit compared to April by 0.32 percentage points (p.p.) was due to adjustments in state revenues and expenditures, especially lower tax revenues, which accounted for 0.26 p.p. of GDP.

In October 2024, the SO SR officially presents updated data on the economy of the government for the year 2023 (the so-called autumn notification on the deficit and debt of the Slovak Republic or also the EDP notification). At the same time, the data on the economy of the government for the previous three years, currently from 2020, are also always updated.

Development of the deficit in 2023 compared to previous years

The General government deficit tripled year-on-year in 2023, its value reached EUR 6.4 billion, which represented 5.21% of GDP (after the autumn revision of GDP¹⁾). The absolute majority of last year's deficit was created by the central government. Its economy ended with a deficit of EUR 6.76 billion, which was significantly more than in 2022, when it managed with a minus of EUR 1.51 billion. Compared to the first estimate from the spring notification, this is a deterioration of EUR - 0.375 billion. On the contrary, the local government last year managed with a surplus of almost EUR 81 million, which was a significantly better result than in 2022. The surplus of EUR 276 million for Social Security Funds was recorded last year, their current surplus was three times the value from 2022.

Refinement of the 2023 deficit compared to the spring estimate

The General government deficit for the year 2023 has therefore increased by almost EUR 389.6 million compared to the April estimate. The biggest impact was the lower collection of taxes on state revenues by EUR 319.8 million, inclusion of a new entity in the General government, which managed with a surplus of EUR 8.5 million. Claims and liabilities of the government also increased by EUR 139.7 million and the value of energy assistance by EUR 9.1 million.

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As part of the government's tax revenues last year, the higher collection of corporate income taxes by EUR 101.7 million had a positive impact and, on the contrary, lower income from the solidarity tax on excess profits in the oil, gas, coal and refinery industry by EUR 416 million.

Refinement of the deficit for years 2020-2022 compared to the spring estimate

As for the years 2020 to 2022, deficit adjustments compared to the April data were negligible, from -EUR 1.7 million up to + EUR 7.5 million. The most significant impact on the deficit was the inclusion of other subjects in the General government sector (years 2020-2022), the adjustment of foreign receivables (year 2021) and also the increase in the impact of hospital debt relief (year 2022). Other changes were also incorporated, but they did not affect the deficit, but only the structure of national accounts transactions.

The General Government debt reached 56.05% of GDP

The General Government debt in 2023 reached EUR 68.9 billion, which corresponded to 56.05% of GDP (after the autumn revision of GDP¹⁾). Although the value of the General Government debt increased year-on-year by EUR 5.4 billion, but the debt-to-GDP ratio decreased because the economy grew faster compared to the April 2024 GDP estimate. In the previous year, 2022, the debt-to-GDP ratio was still at 57.68%.

Regarding changes affecting the so-called Maastricht debt, the most significant impact was the change in recording of the so-called deferred interest from EFSF (European Financial Stability Facility) loans to Greece, which enter into debt after Eurostat's methodical advice. This change concerned the time series from 2012, while in the EDP notification years this impact reached from + EUR 97 million in 2020 up to + EUR 132 million in 2023. This change resulted from the recommendation²⁾ of Eurostat from July 2024.

General note on methodology

When compiling the indicators for the General Government sector for the year 2023, the work of Statistical Office of the SR was based on standard data sources and adjustments, which were also implemented in previous periods.

For the evaluation of the General Government sector, other data are also important in addition to those that were the subject of the notification, therefore the SO SR also publishes the stock of selected financial assets of the General Government sector for the years 2020 - 2023 (included in Annex – Update of the deficit and debt for the years 2020 - 2024 (ZIP 25 kB)).

Data on deficit and debt for EU member countries will be published by EUROSTAT on Tuesday, October 22, 2024 at 11:00 a.m.