Slovak MPs moved the public finance consolidation package for next year to the second reading on Wednesday evening and agreed that the second reading will begin next Tuesday (September 23) morning. The vote, which opposition MPs boycotted in protest of the shortened debate, also concluded the sixth day of the 39th parliamentary session. On Thursday (September 18) morning, the parliament will begin discussions on proposals from the Ministry of Education.
The bill, which amends and supplements certain laws related to public finance consolidation, is being processed under a fast-track legislative procedure, meaning a final decision will be made during the current session. Debate on the package in the first reading began Wednesday morning, with MPs preemptively limiting discussion to a maximum of 12 hours, during which the proposal was fully reviewed.
Opposition MPs criticized the government for past unsuccessful consolidation efforts, the design of the proposed measures—which they argued will not help—and for restricting parliamentary debate. Government coalition MPs and Finance Minister Ladislav Kamenický (Smer-SD) countered that previous administrations, including many current opposition members, are responsible for the poor state of public finances.
The package includes measures such as the removal of public holiday work exemptions, shortening contribution holidays for new entrepreneurs, progressive taxation of employee incomes, and increased health insurance contributions. It does not yet address savings in ministries and offices but focuses on changes affecting companies, municipalities, and citizens.
The Finance Minister announced last week 22 measures expected to generate €2.7 billion in savings and additional tax and contribution revenues. These include reducing unemployment benefits from the fourth month of receipt, adjustments to tax licenses for companies with low or zero corporate income tax, and reducing the VAT deduction to 50% for company vehicles also used for private purposes.
Additional revenue is expected from higher taxation of negative externalities. VAT on selected foods with increased sugar and salt content will rise from 19% to 23%, generating over €90 million for the state budget. Higher gambling taxes are expected to yield €54 million, and charges on primary materials such as gravel, sand, and stone will contribute an additional €24 million.
Source: TASR
