Government sets a cap to state expenses

It will affect the new cabinet.

Ladislav KamenickýLadislav Kamenický (Source: SITA)

Public administration should not spend more than €39.3 billion this year.

This is a cap for the expenditures from the general government budget for 2020, approved by the Peter Pellegrini government at its January 15 session. It was proposed by Finance Minister Ladislav Kamenický (Smer), the Denník N daily reported.

The amount concerns all public administration, which means that, for example, municipalities will not have their own expenditure cap.

Related articleInstead of balanced, Slovakia has risky budget Read more 

“The period for the correction mechanism is all of 2020,” reads the document approved by the government, as quoted by Denník N.

The aim is to prevent the structural deficit from exceeding 0.5 percent. This would also show Brussels that Slovakia is serious about its pledge to have a balanced budget, according to the daily.

Why was the cap introduced?

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