Key facts
- Montenegro's budget deficit contracted by 23.2% year-on-year to EUR 25.0 million in January-April.
- Montenegro's revenues rose 8.2% and expenditures increased 7.1% in January-April.
- Bulgaria's general government budget deficit reached EUR 232.2 million in April.
- Bulgaria's cumulative deficit for January to April stands at EUR 1.8 billion, a 79.9% year-on-year increase.
- The Czech Republic's state budget deficit was CZK 170.2 billion for January-May.
- The Czech Republic's deficit in May alone was CZK 64.1 billion, a 44.2% year-on-year increase.
- Kenya's fiscal deficit is projected to reach 6.3% of GDP for the full fiscal year.
- Chile seeks an additional $6.2 billion in borrowing authority.
- Chile projects its debt-to-GDP ratio to breach 45.0% in 2028.
- Israel's deficit is expected to exceed the permitted ceiling only in 2029.
- Israel requires NIS 15.7 billion in savings to meet fiscal targets.
- Israel projects a deficit of 3.0% of GDP in 2029 against a 2.4% ceiling.
Multiple countries have recently released updated fiscal projections and deficit figures, revealing varied economic landscapes. Montenegro has seen its budget deficit contract by 23.2% year-on-year, reaching EUR 25.0 million for January-April. This improvement is attributed to revenues rising 8.2%, outpacing a 7.1% increase in expenditures, with higher VAT proceeds from resilient private consumption being a key driver. In contrast, Bulgaria reported a general government budget deficit of EUR 232.2 million in April. The cumulative deficit for January to April stands at EUR 1.8 billion, marking a significant 79.9% year-on-year increase and representing 1.5% of GDP. In April, Bulgaria's revenues grew 3.2% while expenditures rose 9.2%.
The Czech Republic's state budget reported a deficit of CZK 170.2 billion for the period of January to May. The deficit in May alone was CZK 64.1 billion, a 44.2% year-on-year increase, with higher social expenses and public investment cited as contributing factors. Kenya's fiscal deficit has surpassed its quarterly target, now projected to reach 6.3% of GDP for the full fiscal year, a substantial increase from the initial estimate of 4.7%. This overshoot is due to revenue underperformance and increased recurrent spending.
Chile's Finance Ministry is requesting an additional $6.2 billion in borrowing authority to manage a higher deficit and account for exchange rate effects. The government has revised its fiscal deficit and debt forecasts upward for 2026-2030, projecting the debt-to-GDP ratio to breach 45.0% in 2028. Israel's Finance Ministry has updated its three-year fiscal projections, indicating that the deficit is expected to exceed the permitted ceiling only in 2029, necessitating NIS 15.7 billion in savings. Projections show a deficit of 2.5% of GDP in 2027-2028, rising to 3.0% in 2029 against a 2.4% ceiling. While the overall outlook has improved due to increased revenue forecasts and slight spending cuts, defense and interest spending weight has increased significantly compared to pre-war levels.