Report

Finance ministry ups budget gap to 4.3% of GDP in 2019, GDP growth is lowered

- Economic growth is revised down to 4.0% from 5.5%
- Revenue downgrade is due to weaker-than-planned EU funds absorption, overestimation of VAT collection, postponing 5G network licence sale
- Expenditure is slightly revised downwards because authorities fail to use allotted funds for EU-backed projects
- Spending is notably revised upwards to cover healthcare and social funds, some regional investment
- New govt pledges fiscal consolidation in 2020, commits to bring down gap to 3% of GDP
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