The state budget recorded a deficit of -EUR 451 million in the first three months of the year, which is some EUR 180 million higher than in the same period last year. Revenue growth (6.1%), although strengthening, is lagging behind expenditure growth (10.8%). Revenue growth is to some extent due to some temporary factors, while the dynamics of some major categories are lower than in times of high inflation. The high growth in expenditure at the beginning of the year is due to higher interest payments and some discretionary factors, while in particular the realisation of investments continues to lag significantly behind plans due to a standstill in the absorption of European funds and systemic weaknesses in their planning and implementation.
In 2024, the general government deficit (-0.9% of GDP) was significantly reduced. At the same time, it was 2 percentage points of GDP lower than the government’s projections of last October. The general government projections are largely determined by the state budget, which has been unrealistic for several consecutive years.
The National Assembly adopted an amendment to the Fiscal Rule Law. In line with its provisions, the Fiscal Council expects a draft Annual Progress Report by 10 April. Under the revised economic governance system, it is the key annual document for monitoring the commitments made by the countries in the Medium-Term Plan. In addition, the European Commission has invited Member States to request, by the end of April, the exercise of the national escape clause related to additional defence expenditure.