The Ministry of Finance of the Slovak Republic presented possible measures for the recovery of public finances
Last update: 06.10.2023 12:05
The Ministry of Finance of the Slovak Republic has presented a material that introduces a wide and varied “offer” of specific consolidation measures that can once again make Slovak public finances sound. The document contains almost 100 different measures totalling almost EUR 10 billion. It will be offered to the new government as a technical input for the preparation of the budget.
A combination of immediate revenue and expenditure consolidation measures and longer-term reforms will be needed to fully restore public finances. Neither slower deficit reduction nor slightly stronger economic growth can stabilise the rising debt trend. Only by actually reducing the deficit to around 2% of GDP within three years can the debt growth be halted. This will require specific consolidation measures worth around EUR 6 billion. The range of measures offered in the consolidation document is larger to allow the new government to select measures with an emphasis on their policy orientations and priorities.
These are expert proposals that were developed in cooperation with the analytical departments of the Ministry of Finance (Institute for Financial Policy, Value for Money Department) and other ministries, but consultations were also held with experts from the National Bank of Slovakia and the Council for Budget Responsibility. When preparing the document, the Ministry of Finance of the Slovak Republic was guided by the recommendations of international institutions such as the European Commission, the OECD and the International Monetary Fund.
Without the consolidation of public finances, the general government deficit will remain close to 7% of GDP for the next three years and gross debt will start to reach 70% of GDP.
At the same time, the Ministry of Finance published the so-called budget calculator. It is a web app where the public can try out the work of the Minister of Finance and draw up their own budget with the aim of improving public finances.
The full document detailing the measures is available here: https://ifp.sk/navrh-na-ozdravenie-verejnych-financii/
The budget calculator is available here: https://rozpoctova-kalkulacka.institutfinancnejpolitiky.sk/
Ministry of Finance of the Slovak Republic