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.

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 articleFiscal 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.

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
Subscribe now for full access

I already have subscription - Sign in

Subscription provides you with:
  • Immediate access to all locked articles (premium content) on
  • 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 and

Get daily Slovak news directly to your inbox

Top stories

Autonomous cars: Attainable reality or outlandish dream?

Questions of morality must be answered before we put autonomous vehicles on the road.

A flying Aero 4.0

Crisis shaves off wages

Pressure to increase wages has been reduced in the aftermath of anti-pandemic measures

Illustrative stock photo

Health Minister pledges to make cancer a top health priority

Krajčí says he wants more done to ensure lives are saved and cancer patients get better treatment.

Illustrative stock photo