Slovakia’s National Council (NR SR) on Wednesday approved the state budget for 2027. The deficit is expected to reach 4.94% of gross domestic product (GDP) next year, exceeding the 4.4% of GDP forecast for this year. Of the 78 MPs present, 76 voted in favour of the budget, while two abstained. They also took note of the general government budget proposal for 2027–2029.
The state budget envisages revenues of EUR 27.911 billion and expenditure of EUR 35.666 billion in 2027. The state is therefore expected to record a cash deficit of EUR 7.754 billion.
Total general government revenues are projected to reach EUR 63.343 billion next year, while expenditure is expected to amount to EUR 70.786 billion. This would result in a deficit of EUR 7.443 billion, equivalent to 4.94% of GDP.
The budgeted deficit for next year is higher than this year’s, which was initially set at 4.1% of GDP and is currently expected to reach 4.37%. Over the following two years, the deficit is projected to gradually decline to 4.5% and 4% of GDP, respectively, although this will require additional fiscal consolidation measures. “Under the currently set budget framework, this strategy will require measures amounting to 0.8% of GDP in 2028 and 1.4% of GDP in 2029,” the Slovak Finance Ministry said. Without these measures, the deficit would continue to rise to 5.26% and 5.41% of GDP, respectively.
In the final vote, MPs also approved an amendment proposed by parliamentary committees under which salaries for employees in the state and public administration will increase by 8.4% from 1 July next year.
MPs spent five days debating the country’s key annual budget legislation in Parliament. Opposition representatives repeatedly criticised the proposal, saying it would do nothing to improve Slovakia’s public finances and would instead increase the deficit further. Coalition MPs described it as a budget bringing good news and reflecting a political compromise.
Among other measures, the budget provides for the continuation of support to offset high energy prices, with EUR 250 million allocated for this purpose. The budget chapter for the Slovak Agriculture and Rural Development Ministry includes EUR 100 million for measures to combat drought, retain water in the landscape and mitigate the effects of climate change.
The budget also provides for EUR 482 million in expenditure to cover planned legislative changes. “This expenditure is intended to cover the impact of measures in the social sphere and family-support policies, particularly the allowance for assistance with dependency-related needs and the reform of social services. Under this heading, the budget also covers one-off forms of assistance, such as an increased allowance for first-year schoolchildren and a birth grant,” the Finance Ministry said.
The ministry has warned that, given the challenging economic conditions, halting the growth of public debt will take several electoral terms. Although fiscal consolidation is helping to curb debt growth, the ministry said that bringing it to a complete halt would require reducing the overall budget deficit significantly below 3% of GDP.
“By the end of the budget horizon, gross debt will reach 69.6% of GDP, assuming that the budget targets are met and additional consolidation takes place after 2027. Failure to continue restoring the health of public finances would mean that debt would exceed 70% of GDP by the end of the budget horizon,” the ministry added.
Source: TASR
