Fiscal Council: Budget deficit for 2024 is likely to significantly exceed deficit for 2023

The budget deficit for 2024 is likely to significantly exceed the 2023 deficit, with major risks to the budgetary consolidation process, warns the Fiscal Council in a preliminary opinion on the draft laws on the state budget and the state social security budget and on the Fiscal Budget Strategy for 2024-2026.

The Fiscal Council received a first set of documents on the three draft laws from the Ministry of Finance on 9 December, with a new set of drafts to be sent to the institution in the afternoon of 13 December. Under these circumstances, the Fiscal Council states that it was unable to review the extended opinion, so it decided to issue a preliminary opinion.

"The budget deficit in 2023, according to the documents submitted by the Ministry of Finance, is 5.9% of GDP in the cash methodology and 6.0% of GDP in the European/ESA methodology," the preliminary opinion of the FC reads.

The state budget for next year is based on an economic growth of 3.4% and a budget deficit of 5% of GDP.

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