Fiscal impacts of the global crisis within the Slovak Republic

Abstract

The current global financial crisis has had a negative impact on social and economic development of most developed countries, which results in the deepening of fiscal imbalance. The objective of this paper is to analyze the impact of the crisis on the development of revenues and expenditures of the state budget and the budgets of regional self-governments of the Slovak Republic. The analysis is based on the period of 2004 – 2009, which reflects the changes evoked by the public finance reform, as well as the initial impacts of the global crisis. Apart from the analysis, methods of synthesis and comparison have been used. We assume that the entry of the Slovak Republic into the Eurozone and the acceptance of the common currency, the Euro, will continue to mitigate the negative impacts of the crisis on the deepening of fiscal imbalance. Key words: global crisis, unemployment, state budget, municipal budget, GDP.