Breaking down myths about the consolidation offer
Last update: 10.10.2023 13:30
As more and more inaccurate information about the list of consolidation measures has been appearing in the media over the past few days, often misinterpreted, especially by politicians, we would like to set the record straight.
The EUR 10 billion worth of measures exceeds the amount of consolidation needed, which means that the next government will have different options to put together an offer according to its policy preferences. The Ministry of Finance of the Slovak Republic notes that this is a list of measures and only the next government will decide what path to take. None of these measures are approved as the expert government does not have a mandate to make such decisions.
Here are the facts:
• It is not true that we are facing some kind of “tax massacre”, the measures are spread over a period of 3 years so that our economy can process them continuously and they do not have a negative impact on the standard of living of the population.
• For example, in 2024, when consolidation must necessarily start, there are more measures on the expenditure side (58%) than on the revenue side (42%).
• 16% of all measures are higher taxation of negative externalities and 34% are revenue increases less harmful to the economy.
• 10% of the measures aim to slim down public employment and 25% to target social spending.
• To a large extent, the final draft measures can be put together from the expenditure side. There is no binding obligation on the next government to take more measures on the revenue side.
For a full list of measures, click here:
Ministry of Finance of the Slovak Republic