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.

SkryťRemove ad
Article continues after video advertisement
SkryťRemove ad
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.

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

News digest: Slovakia honours fallen miners

A problem with Russian oil supplies fixed. Slovakia has no cardinal.


3 h
Marek Stankovič and Daniel Duranka, two of the three top managers of Pixel Federation.

Slovak videogame company sees record revenues during pandemic

The company incorporates ecology through video games.


9. aug
The Great Pyramid of Giza.

Are there hidden chambers in the Pyramids? Slovaks could help find them

Scientists are studying ancient monuments using a method based on gravity.


8. aug
SkryťClose ad