Slovakia adopts 2012 budget with 4.6% deficit

(BRATISLAVA) - Slovak lawmakers on Wednesday adopted a 2012 budget with a projected deficit of 4.6 percent of the gross domestic product (GDP), higher than the originally proposed deficit of 3.8 percent.

"The 4.6 percent deficit is the maximum level which, with any luck, we won't exceed," Finance Minister Ivan Miklos said after the vote.

Slovakia's government originally wanted to trim the public finance deficit by more than one percentage point from this year's figure of 4.9 percent of GDP down to 3.8 percent of the GDP next year.

But the slowing economy -- expected to grow by 1.7 percent next year instead of the original forecast 4.4 percent -- has thwarted the austerity drive of the centre-right government known for fiscal discipline.

Slovakia plans to cut the public sector deficit -- comprising the deficits of the central government, welfare authorities and municipalities -- to under 3.0 percent of GDP in 2013 to meet the ceiling for the eurozone, which Slovakia joined in 2009.

Out of 133 lawmakers present, 75 backed the budget while 54 voted against and four abstained.

Lawmakers of the biggest opposition party, left Smer-SD, walked out before the vote, lowering the quorum to help the centre-right coalition pass the budget.

"It's better to have a budget that we don't think is good than not to have any budget at all," opposition leader and chairman of the left Smer-SD party Robert Fico said before the vote.

Slovakia's economy is heavily dependent on foreign demand, namely from Germany, where the former communist country exports cars and electronics produced here.

It resumed growth last year, expanding by 4.0 percent after contracting 4.8 percent in 2009 during the global crisis.