Spectator on facebook

Spectator on facebook

Government postpones plan for balanced budget, again

The ageing of the population poses a risk for development in public finances

(Source: Sme)

Slovakia has significantly improved its long-term sustainability of public finances in a few years. But the government has slacked off in its consolidation efforts and has not fully used the favourable economic development during the last few years to improve its fiscal position, arguing that when the economy thrives, people should feel it too. Economic analysts warn that this poses a threat for the country.

“The government is not using good economic times to create a needed reserve and a more significant reduction of the public debt, but instead an increase of its expenditures,” said Ľubomír Koršňák, macroeconomic analyst of UniCredit Bank Czech Republic and Slovakia, as cited by the Hospodárske Noviny daily.

Analysts warn that the economic situation will be not so favourable forever and that it is nearing its end.

“The idea that we are thriving and that it is necessary to pass it on to people is nice, but when we hand out state revenues within social packages, we will be missing them in the social system during worse times, which will certainly come,” said Koršňák.

Postponed balanced budget

The Slovak government has been postponing its target of a balanced budget. Originally the government planned a balanced budget already for 2018. Now in the Finance Ministry’s stability programme it is planning a balanced budget only for 2020. Experts, however, do not believe that the government will stick to it since the parliamentary election is supposed to take place that year and that the government has already announced a new social package with a price tag between €500 and €600 million.

The Finance Ministry has also increased the public finance deficit for 2019 from the original 0.1 percent of GDP to 0.32 percent.

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

The processing of personal data is subject to our Privacy Policy and the Cookie Policy. Before submitting your e-mail address, please make sure to acquaint yourself with these documents.

Top stories

Lajčák considers resignation if the migration compact is rejected

The foreign affairs minister also admitted to some disputes with PM Robert Fico.

Foreign Affairs Minister Miroslav Lajčák

How to cope with waste

Slovakia lags behind in recycling and reducing waste, but examples of other countries, particularly the Netherlands, are helping Slovakia implement strategies to reduce waste.

Roughly 67 percent of communal waste ended up at landfills in Slovakia, while only 23 percent was recycled.

The Burning Hell have warmed to Slovakia Video

There is one place in particular that the Canadian musicians have a soft spot for.

The Burning Hell will perform in Bratislava and in Banská Štiavnica.

Automotive industry and e-commerce drive the industrial sector

Western Slovakia with Bratislava remains the strongest locality.

Prologis Park Bratislava