Slovakia will have deficit budget in 2018

Analysts call for faster consolidation of public finances

Finance Minister Peter KažimírFinance Minister Peter Kažimír (Source: TASR)

Slovakia is enjoying robust growth in its economy. In spite of this, the Robert Fico government pushed through parliament another deficit budget and again, postponed reaching a balanced deficit.

“The adopted budget is a glue for the ruling coalition,” said Prime Minister Robert Fico after parliament adopted the law of the year, referring to the summer crisis in the ruling coalition of his Smer party, the Slovak National Party (SNS) and Most-Híd.

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

The crisis resulted in shaping another social package, which includes measures sponsored by individual coalition parties like the 13th and 14th salaries, the increase of the minimum wage, the exemption of working pensioners from the payment of income taxes, as well as an increase in bonuses for night, weekend and holiday work. Since several of these measures are waiting to be incorporated into Slovak legislation, their impact on public finances is still unclear.

SkryťTurn off ads
Read also: Minister Kažimír presents a new budget Read more 

Analysts criticise the government for too slow consolidation of public finances.
“The budget is a wasted opportunity,” said Róbert Vlachynský, analyst with the economic think-tank INESS.

The budget

The adopted state budget projects revenues of €13.983 billion and expenditures of €15.956 billion, leaving a deficit of €1.973 billion next year. The basis for calculating the budget was a macro-economic prognosis foreseeing the national economy as growing by 4.2 percent in 2018.

Behind the acceleration of the economy’s growth is mostly the planned production launch in car plants and the related growth of exports.

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

A cup of coffee with a furry friend could help them find their new forever friend - and get you a new companion.

Weekend: Mingling with felines in Bratislava's cat cafes

Take a trip to mountain tarns, old-timey cinematography and cats.


19 h
Volkswagen will make all-electric versions of the Porsche Cayenne luxury SUV.

News Digest: Volkswagen Slovakia to produce all-electric luxury SUV

LGBT+ minority could face new difficulties, a suspect is charged in the Daniel Tupý murder case.


24. mar
Filip Toška holding chard in the hydroponic Hausnatura farm.

How a Mayan doomsday prophecy took a Slovak to hi-tech agriculture

Hydroponic farm run out of former telephone exchange.


9. mar
A Slovak citizen got his possessions frozen over sanctions - he attempted an arms deal for Russia. (Illustrative photo)

News digest: Slovak citizen is accused of involvement in attempted Russian arms deals

Heger goes to Ukraine, virtual reality resurrects a Roman camp. and AI is taking over – or is it?


18 h
SkryťClose ad