Page 63 - CE Outlook Regions 2022

3.4.6 Major Sectors

According to the approved "support measures for the processing of
agricultural primary production products" by the Slovak government,
for the period 2022-2039 Slovak food producers and farmers could
receive as support in the amount of up to €1.25bn. The measures
are based on the Government Programme Declaration, aiming to
increase food security in Slovakia, mainly in the processing of
primary agricultural products.

The government stressed that based on a study by the European
Investment Bank and the European Commission, it has been
estimated that there is a shortfall of up to €175mn per year in food
production in Slovakia. The implementation of a support programme
will start in 2022.

4.0 Budget and debt outlook

4.1 Budget and debt - Czech Republic

According to the finance ministry, in 2022 the general government
balance should no longer be affected by the effects of the adopted
anti-epidemic measures and the consolidation of public finance will
be a key priority of the ministry. The overall deficit will reach 4.4% of
GDP in 2022, with debt rising to 46.2% of GDP.

The CNB believes the previously expansionary fiscal policy will turn
restrictive in 2022, due to the discontinuation of government aid for
anti-epidemic measures, despite another higher-than-usual increase
in pensions. In 2023, fiscal policy will have a neutral effect on GDP
growth given the measures approved so far on both the revenue and
expenditure sides of public budgets. Growth in government

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