Slovak strong GDP growth seen helping budget goals

    Slovakia's state budget income 
exceeded spending in January, data showed on Thursday, and 
analysts said accelerating economic growth in 2007 would allow 
for comfortable fulfilment of the euro-entry fiscal condition. 
    The central state budget, which is the biggest part of the 
important broad public finances, showed a surplus of 2.9 billion 
crowns ($108.1 million) at the end of January, data on the 
finance ministry's web page showed. 
    The surplus was smaller than 12.1 billion crowns recorded a 
year ago, but last year's balance was influenced by a one-off 
tax income from tobacco products. 
    The full year 2007 budget deficit ceiling was set at 38.39 
billion crowns, above the 31.68 billion crowns gap seen in 2006 
but still in line with the plan to adopt the euro in 2009, 
analysts said. 
    "The chance to meet the public finance deficit target of 2.9 
percent of GDP is quite high," said Slovenska Sporitelna analyst 
Maria Valachyova. 
    The balance in overall public finances will be the key 
fiscal yardstick for euro zone membership and Slovakia must keep 
the deficit under 3.0 percent of GDP in 2007 to qualify for euro 
adoption in 2009. 
    The government of leftist Prime Minister Robert Fico, which 
took power after beating a centre-right administration in a June 
2006 election, will benefit from accelerating economic growth 
based mainly on rising output in the automotive industry. 
    The finance ministry has revised its 2007 real GDP growth 
forecast to 8.1 percent, up from 7.1 percent growth projection 
that was the basis for calculating the 2007 budget revenues. 
    "Strong economic growth will create comfortable conditions 
for higher revenues (than planned)," said ING Bank senior 
analyst Lucia Steklacova. 
    

[BRATISLAVA/Reuters/Finance.cz]