Public finances are overextended. What should the new government do?

Smer leaves budget mines for the new government, including in pensions and taxes.

The parliament passed the 13th pensions only a few days before the February 29 parliamentary election.The parliament passed the 13th pensions only a few days before the February 29 parliamentary election. (Source: TASR)

The new government will take over public finances in problematic condition, say analysts. The outgoing parliament adopted this year’s budget with a deficit of 0.49 percent of GDP, but it is clearly an unrealistic expectation.

SkryťTurn off ads
Article continues after video advertisement
SkryťTurn off ads
Article continues after video advertisement

The Council for Budget Responsibility predicts the deficit to reach 1.79 percent, which is a difference of nearly €1.3 billion. If the recently adopted 13th pensions are signed into law, the public finances deficit may rise to as much as 2.42 percent.

Related article Fiscal council can criticise, but not halt, the irresponsible spending of public money Read more 

The generous pension system combined with an unflattering demographic situation is not the only factor that turns public finances into a time bomb.

SkryťTurn off ads

The Index magazine has summed up some significant problems of public finances the government should solve as soon as possible, although its future leaders have said already they do not plan to cancel any social measures adopted by Smer.

Pension system

The rest of this article is premium content at Spectator.sk
Subscribe now for full access

I already have subscription - Sign in

Subscription provides you with:
  • Immediate access to all locked articles (premium content) on Spectator.sk
  • Special weekly news summary + an audio recording with a weekly news summary to listen to at your convenience (received on a weekly basis directly to your e-mail)
  • PDF version of the latest issue of our newspaper, The Slovak Spectator, emailed directly to you
  • Access to all premium content on Sme.sk and Korzar.sk

Top stories

Slovakia marks 20 years since joining NATO.

Slovakia marks 20 years in the Alliance.


Daniel Hoťka and 1 more
Píšem or pišám?

"Do ľava," (to the left) I yelled, "Nie, do prava" (no, to the right), I gasped. "Dolšie," I screamed. "Nie, nie, horšie..." My Slovak girlfriend collapsed in laughter. Was it something I said?


Matthew J. Reynolds
Czech biochemist Jan Konvalinka.

Jan Konvalinka was expecting a pandemic before Covid-19 came along.


SkryťClose ad