INSTANT VIEW 1-Slovak Jan state budget surplus SKK 2.9 bln

    The Slovak central state 
budget showed a surplus of 2.9 billion crowns ($108.1 million) 
at the end of January, compared with a 12.1 billion crown 
surplus a year ago, the finance ministry said on Thursday. 
 
CENTRAL STATE BUDGET     JAN 07        JAN 06       FY 2007 PLAN 
  (SKK bln) 
  revenues               27.159        32.789         310.472 
  expenditure            24.231        20.706         348.858 
  balance                 2.929        12.083         -38.386 
    
- The budget deficit totalled at 31.68 billion crowns for 
for the full year 2006, well below the projected deficit ceiling 
of 57.47 billion crowns. 
- Tax revenues total 24.790 billion crowns in January, up from 
30.255 billion crowns in the same period last year. 
 
 BACKGROUND: 
- The 2007 central budget was approved with a ceiling for a the 
deficit of 38.386 billion crowns. 
- Slovakia introduced a flat 19 percent tax rate in 2004 as a 
part of an overhaul of its complex tax system, and the tax 
reform has helped bring higher budget revenues. 
- The state budget is also benefiting from faster than expected 
econmic growth, which the finance ministry forecasts at 8.1 
percent in 2007. 
- The central state budget data are calculated according to 
local cash-flow methodology as the ministry publishes the key 
public finance statistics according to the European Union's ESA 
95 standards bannually. 
- The cash-flow methodology takes in revenues and expenditures 
when money arrive or leave the state accounts, while the accrual 
ESA 95 method includes revenues and expenditures immediately as 
they occur. 
- The central budget is the major part of public finances. The 
overall public finance deficit ceiling was set at 2.9 percent of 
GDP for 2007, including the cost of pension system reform. 
- Slovakia joined the Exchange Rate Mechanism 2 (ERM-2), the 
precursor to euro, in November 2005, as part of its plan to 
adopt the euro in 2009. 
     
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[BRATISLAVA/Reuters/Finance.cz]