The state budget deficit in 2024 amounted to EUR 808 million; excluding the direct impact of intervention measures, the deficit was EUR 275 million.
The much lower overall deficit in 2024 compared to the previous year was mainly due to the reduced impact of intervention measures. It was approximately EUR 1 billion lower than in 2023, also partly due to dedicated revenues and EU funds for flood recovery. The lower deficit excluding intervention measures was the result of stronger revenue growth and a reduction in investment, while growth in other expenditure remained high and well above the long-term average.
As expected by the Fiscal Council, the actual outturn in 2024 again deviated significantly from the estimate made by the Ministry of Finance three months before the end of the year. Realistic and transparent projections are a prerequisite for decisions that support economic growth, the sustainability of public finances and the well-being of society. Precaution in fiscal planning is generally appropriate, but systematic overestimation of expenditure and the resulting deficit can lead to the inappropriate use and allocation of otherwise limited public resources, undermine public and financial market confidence in the ability to manage public finances, and result in sub-optimal choice of measures.
The general government deficit, which averaged 1.4% of GDP in the first three quarters of 2024, was also lower than in the same period of the previous year. We estimate that the deficit for the year as a whole will again be lower than the Ministry of Finance’s October projection. The continued decline in the gross government debt ratio, which stood at 66.9% of GDP at the end of the third quarter, continues to be driven mainly by inflation. The net government debt remains much lower (around 45% of GDP), due to the maintenance of high liquidity reserves.