Evaluation of Medium-term Budgetary Objectives for 2020-2023

It represents an unprecedented surge in the deficit over a very short period of time when compared to the approved budget which assumed a deficit at a level of 0.5 % of GDP.

This surge has mainly been driven by the impacts of the coronavirus COVID-19 pandemic that adversely affects the economic development. The unrealistic budgeting of non-tax revenues and expenditures in certain domains of the general government in the approved 2020 budget along with the approval of the so-called 13th pension payments at the beginning of 2020 have also contributed to the growth in the deficit. According to the Stability Programme, the worsened financial performance in 2020 will also reflect in the estimated increase in gross debt which is expected to grow from the level of 48.0 % of GDP at the end of 2019 to as much as 61.2 % of GDP at the end of 2020.