Slovakia to submit first budgetary plan in line with new rules to EC in autumn

The new European budgetary rules, which are also being transposed by Slovakia, will be reflected in the government's new strategic document - a multi-annual national plan in which the cabinet will present a binding consolidation of public finances, planned reforms and investments, TASR has learnt from the Finance Ministry's Financial Policy Institute (IFP). The first plan will be submitted to the European Commission (EC) for approval as early as this autumn. Following its approval, it will be binding when drawing up budgets as of 2025.

"Our national spending limits will thus be replaced by a spending limit set by the EC, thereby preventing a duplication of rules. The goal of the new rules is to ensure that the deficit returns below 3 percent of GDP and that the debt is kept below 60 percent of GDP, or drops to this level," explained the institute, adding that many technical details of the new budgetary framework will be released gradually.

Contrary to the original European budgetary rules, the new ones look more to the future, stated IFP. Public finances will need to be prepared, for example, for costs related to an aging population.

Source: TASR