The Finance Ministry of a country has announced that the public finances ended last year with a deficit of 3.6% of the Gross Domestic Product (GDP). The government debt has also increased to 44.6% of GDP, compared to 42% in 2021. The Ministry has also forecasted a public finance deficit of 4.2% of GDP and an increase in debt to 45.8% of GDP for this year.

The ministry attributed the better-than-expected performance last year to the fact that the support for large companies could not be used up due to high energy prices, and these costs have been shifted to this year. Additionally, the lower-than-expected uptake of social benefits and the minor budgetary impact of the collapse of a bank, Sberbank, also played a role.

It is worth noting that these figures are forecasts and subject to change based on various economic and political factors. However, the ministry’s forecast indicates a challenging year ahead for the country’s public finances. It’s important for the government to take appropriate measures to address this issue, such as implementing cost-saving measures and promoting economic growth to improve the country’s fiscal situation.

Article by Prague Forum