Slovakia’s public finances are under growing pressure, with the state budget deficit continuing to widen in the first months of this year. By the end of April, the shortfall had increased year-on-year by around 500 million euros, reaching 2.586 billion euros. The issue was discussed on Monday at a meeting of the tripartite council, where government officials, employers and trade unions reviewed the impact of austerity measures between 2023 and 2025. The president of the National Union of Employers, Miroslav Kiraľvarga, said that although the state raised roughly 2.4 billion euros last year through austerity measures, Slovakia’s debt has climbed to about 84 billion euros, exceeding 60 percent of GDP, and is expected to rise further to around 90 billion euros by 2026, or more than 62 percent of GDP.
Trade unions also voiced concern over weaker-than-expected revenues. The Head of the Confederation of Trade Unions, Monika Uhlerová, said economic growth is slowing, consumption is weakening, and this is being reflected in the state of public finances.
Finance Minister Ladislav Kamenický (SMER-SD) rejected the criticism, arguing the government has made clear progress. Kamenický said the deficit has improved by more than two percentage points of GDP compared to the previous government, and insisted that without these measures, the situation would be significantly worse.
Economist William Páleník from the Slovak Academy of Sciences offered a more cautious assessment. Páleník said that while austerity measures have helped prevent a worse outcome, their overall mix was not optimal. He added that the state did not do enough to cut its own spending or tackle inefficiencies, corruption and clientelism.
Economists also note that the government does not plan further austerity measures in an election year, meaning fiscal trends are unlikely to change significantly in the near term.
Source: STVR
