Spending reviews

Spending review is a standard tool in the OECD countries designed to achieve public policy objectives more effectively. It helps the governments to identify a potential for a more effective use of public funds as well as to identify potential savings necessary to meet national and European fiscal commitments.

The spending review assesses the efficiency and effectiveness of expenditures and identifies measures increasing the value for money of public finances, thus allowing fiscal savings, better public services (results) and / or shifting of finances to government priorities.

Joint analytical teams of the Ministry of Finance and ministry responsible for the particular sector prepare final reports including measures for improvement and an action plan for their implementation. The reports are a part of the standard budgetary process.

The revision of expenditure is one of the measures aimed at improving the quality of public finances in the Stability Program as well as in the National Reform Program.

 

2019

 

Interior 

Effective and reliable public administration and citizens' security are the main activities of the Ministry of Interior of the Slovak Republic. These activities are carried out by public officials, members of the police, fire and rescue services. The review of expenditures of the Ministry of Interior will thus focus on expenditures related to those activities, amounting to 1.4% of GDP a year.

Terms of reference

Defense 

The defence spending review will assess expenditures totalling 1.7% of GDP a year. The main objective is to analyse the expenditures and propose measures aimed at improving the defence spending effectiveness, including increase in investment expenditures in line with the general budget.

Terms of reference

 

Culture 

The spending review on cultural policy amounting to 0.54% GDP a year will assess the public expenditures in the area of culture, including expenditures of affiliated organisations. The main objective is to assess the efficiency of these expenditures with the emphasis on better overall results.

Terms of reference

 

2018

Groups at Risk of Poverty or Social Exclusion 

The spending review will assess the expenditures impacting integration of at-risk-of-poverty-and-social-exclusion groups. It will focus on the efficiency of current protection and integration policies, investigate data collection, outline best practice examples and investigate options for best practice implementation.

Final report
Terms of reference

 

Agriculture and rural development 

The review of expenditure on agricultural policy and rural development amounted to 1.9% of GDP a year, including expenditures of affiliated organisations and largest related state enterprises. The aim of the spending review is to assess the expenditure efficiency of responsible ministry with the emphasis on better results.

Terms of reference

 

Public wage bill 

Employment and remuneration in state and public sector are subject of the spending review on public wage bill. The spending review covers remuneration of more than 234,000 employees and its main objective is to identify measures leading to increased efficiency in the use of human resources in public sector.

Terms of reference

 

Healthcare II. 

Healthcare Spending Review II. seeks to identify the best opportunities for improving patient health by increasing the allocative efficiency of available resources. Emphasis will be placed on finding health-enhancing value measures that can be implemented while further reducing inefficient expenditure. The review will introduce funding based on setting total required healthcare expenditure, while improving the tracking of results and data collection. An increase of health expenditure above the level of inflation will be conditional on demonstrating a positive impact on health outcomes. In addition, the major prerequisites for faster growth are an end to growing hospital indebtedness, a change in the remuneration mechanism of health care workers, prescription limits, and the full functionality of DRG and eHealth. The main outcome for the healthcare sector is to reduce amenable mortality to the level of the average of the other V4 countries (Czech Republic, Hungary and Poland) by 2020 with health expenditure rising at the rate of inflation.

Final report
Terms of reference

 

2017

Education 

The review of education expenditure totalling 3% of GDP annually identified savings potential of 88 mil. EUR per year (0.1% of GDP) through the rationalization of the regional education network, abolition of education credits for teachers and increase in the proportion of students finishing their studies before master´s degree. The review suggests improving the position of teachers as a central element of quality, including a greater emphasis on practical training for future teachers. The report proposes an additional increase in tariff wages for young teachers and greater remuneration for demonstrable quality. In order to achieve better results in general, according to the review it is necessary to improve quality and availability of data on the results of schools, pupils and graduates, as well as to prepare a reform of the accreditation process for universities.

The spending review on education was prepared in cooperation with the Institute of Education Policy of the Ministry of Education, Science, Research and Sport of the Slovak Republic.

Final report
Interim report
Terms of reference

 

Labour Market Policies and Social Policies 

Review of expenditure for labour market and social policies addressed the expenditures amounting to 3.7% GDP a year. The main objective of these policies focuses on the increase in employment rate and the decrease in at-risk-of-poverty rate of population. The review aims to improve the effectiveness of policies, notably in spending on social transfers and insurance, pensions, social services, employment policies, operations and investments of the ministry, its organizations and the Social Insurance Agency, while maintaining spending levels under the 2020 Stability Program. The review has identified potential savings amounting to EUR 160 mil per year, which can be used more effectively to improve employability of jobseekers and to strengthen social inclusion

Final report - Draft measures
Interim report
Terms of reference

 

Environment 

Review of expenditures for environment amounting to 0.6% GDP identified the combination of lower expenditures and higher revenues totalling EUR 130 mil. The greatest value for people can come from improved air quality, but also from measures in waste management and public sewerage. Slovakia supports environmental protection by an amount comparable to V3 or EU average. In comparison to international standards, Slovakia shows above-average results in reducing greenhouse gas emissions, while it lags behind in waste water management, waste management and air quality.

Spending review on environment has been prepared in cooperation with the Institute for Environmental Policy.

Final report
Interim report
Terms of reference

 

2016

Informatization 

The review of IT expenditure identified measures with annual savings potential of EUR 22 to 40 mil. These can be achieved through improved purchase of licenses, telecommunications services and more effective use of the government cloud. The report identifies measures for improving processes and recommendations allowing for a more efficient evaluation and management of state IT.

Final report
Terms of reference

 

Healthcare 

The target of the expenditure review on health services has been to identify potential savings, in health care spending in particular, and then using it for efficient and unavoidable investment in bed facilities and to slow down the growth of expenditure at the level of price growth in the economy. The result outcome to be achieved is the reduction of amendable mortality to the average of the V3 countries.

Final report
Terms of reference

 

Transport 

The review of transport spending proposed measures for improving efficiency of the current investment envelope while maintaining its size and streamline unit operational costs for transport in a sustainable way. The aim of public transport investment and policies is to develop transport in such a way as to facilitate the transport of goods and people quickly, in good quality, safely, with the lowest possible negative externalities and at a reasonable price in areas where the private sector cannot provide it.

Final report 
Terms of reference