Slovakia's public finances continued to operate with a significant deficit in 2024, although it was lower than initially expected. According to analysts from the National Bank of Slovakia, the situation did not improve compared to the previous year, meaning fiscal consolidation remains necessary for sustainable public finances.
The public finance deficit reached 5.3% of GDP, which was slightly worse than the previous year but lower than initially forecasted. Analysts noted that revenue measures for 2024, coupled with reduced spending on energy compensation, helped finance additional expenditures, particularly in social spending, wages for public sector employees, and public sector goods and services consumption.
Despite the improvements, the deficit still exceeds the EU's 3% GDP reference limit, and Slovakia remains under the excessive deficit procedure.
The public debt grew to 59.3% of GDP, driven by the primary budget deficit and the need for financing. Although the deficit was lower than initially projected, debt levels still exceeded budgetary plans by 1 percentage point, surpassing the highest level of the debt brake mechanism by more than 6 percentage points.
Source: TASR
