Public Finance Sustainability Not Achieved in 2025, Budget Council Warns

Public Finance Sustainability Not Achieved in 2025, Budget Council Warns

In its assessment published on Monday, the Council for Budget Responsibility (RRZ) concluded that long-term public finance sustainability was not achieved in 2025. The government should have immediately presented measures to reduce Slovakia's debt after the country's 2025 debt figures were released in April.

In its report assessing compliance with budget responsibility and transparency rules in 2025, the Council warned that such a sanction is stipulated by the Constitutional Act on Budget Responsibility. By failing to comply with this requirement, the government of Robert Fico (Smer-SD) is violating the law. The Constitution also requires Parliament to safeguard the long-term sustainability of public finances.

The long-term sustainability indicator under an unchanged-policy scenario reached 5.5% of GDP in 2025, placing public finances in the high-risk zone. Despite three rounds of consolidation measures, the indicator has not improved significantly.

Gross debt stood at 61.4% of GDP at the end of 2025, remaining in the highest sanction band under the debt brake. Without further measures, it would rise above 75% of GDP by 2030, moving further away from the upper debt-brake limit. Public debt has remained above 50% of GDP since 2020, while, according to currently available model estimates, the same threshold also corresponds to a safe level of debt for Slovakia.

Source: TASR

Martina Greňová Šimkovičová, Photo: TASR

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