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The outlook for 2023 is currently characterised by extreme uncertainty, which requires flexible government action, and high risks of a further deterioration in the economic growth outlook, which could have important financial implications for the general government sector’s financial position. While taking urgent action to limit the impact of the energy price increases, the Government […]

The draft revised budget foresees a reduction in the overall state budget deficit from EUR 3.1 billion in 2021 to EUR 2.0 billion in 2022. The decrease compared to last year is due to high nominal GDP growth and consequently higher revenues, and a much less negative impact of one-off factors on the balance than […]

According to provisional data, the state budget deficit amounted to EUR -342 million in the first eight months of 2022, while, without taking into account the direct effect of COVID-related measures, there would have been a surplus of EUR 189 million. Revenues increased by 16.7% year-on-year in the first eight months of 2022 and 20.2% […]

The present analysis of deviations in forecasts, which the Fiscal Council is required to prepare every two years in accordance with legislation, is truncated. The legislation adopted in 2020 determines that 2020 and 2021 are not to be taken into account in the analysis of forecast deviations, which limits the relevance of this ex-post evaluation […]

Public finance position continues to improve gradually on the back of strong revenue growth, coupled with a rapid recovery in economic activity and the withdrawal of support to mitigate the effects of the epidemic, while the rest of public spending is growing markedly. For the time being, heightened macroeconomic risks are mainly reflected in the […]

Last year, fiscal trends were again seriously affected by the epidemic. The scope of measures taken to mitigate its impact was again substantial, however, the general government deficit decreased, mainly due to a marked rebound in economic activity and the resulting cyclically driven high revenue growth. Nevertheless, fiscal policy was pro-cyclically expansionary according to the […]