Slovakia's fiscal sustainability has improved to its best level since 2018, with the risk level dropping from high to medium, the Finance Ministry reports. Due to responsible governance and consolidation efforts, the 2023 deficit was reduced to 5.3% of GDP, despite public debt previously expected to reach 71.4% of GDP by 2027. The government plans to reduce the deficit further to 4.9% in 2024, 4.1% in 2025, and around 3.5% by 2027, in line with EU rules. However, the Fiscal Responsibility Council warns that slower deficit reduction could delay reaching the 3% target to 2028.
Opposition leader Michal Šimečka (PS) criticized the government for deferring major fiscal reforms and increasing debt by €1,500 per capita. PS also calls for the repeal of the transaction tax, citing its negative impact on businesses and layoffs, with over 2,000 jobs lost this year. In response, PM Fico defended the tax as essential for consolidation, blaming past governments for fiscal damage. The Hlas-SD party has suggested exempting small tradespeople from the tax while maintaining its role in fiscal strategy.
Source: TASR
