A supplementary budget always means a bigger deficit. Two months before the end of the year, there was not much else the government could do. The Finance Ministry estimates that only 8,4 billion euros will flow into this year's budget, instead of the planned 8,6 billion euros.

There are two main reasons for this year's supplementary budget. First the interest rates the government will have to pay, which will be 150 million euros higher than planned. Financial transfers into the pension purse will also be higher than expected. On the other hand the shortage because of the scrapping of the real estate tax was covered with money from the awarding of mobile telephone licenses, as well as from higher dividends and increased excise duties on alcohol and tobacco.

The ministers will also have to save around 60 million euros, mostly on the account of projects, which could not be completed this year anyway. The budget deficit will go up to 1,2 billion euros. That's from 3,2 percent of GDP, to 3,4 percent of GDP.

In the meantime Brussels has unfrozen previously blocked funds, which means that we can expect a higher influx of European funds. The Finance Ministry also intends to additionally change the bookkeeping system for EU funds for the quicker transfer of EU money from the government' account into the budget.

G. C., MMC;
translated by K. J.