Slovakia’s government has approved its final state budget of the current parliamentary term, with the deficit set at 4.94 percent of GDP. Prime Minister Robert Fico (SMER-SD) notes that the government is introducing no new taxes or levies. Instead, he says, it is continuing with fiscal austerity, putting public finances in order, keeping debt at a manageable level and preserving social standards.
The government says key priorities in next year’s budget include compensation for high energy prices, nuclear policy and measures to tackle drought. More money is also earmarked for higher salaries in schools and the police, as well as for hospitals.
The opposition has rejected the proposal, arguing that after three rounds of austerity measures, the government is still planning to end its term with a deficit only slightly lower than the one it inherited in 2023. It also warns that Slovakia’s debt burden will continue to grow. Opposition MP Július Jakab (Slovensko) says net public debt could approach 90 billion euros next year, warning that the burden will ultimately fall on future generations.
The opposition also says the government should present a balanced budget, arguing this is required by Slovakia’s constitutional fiscal responsibility rules. It has said it is prepared to challenge the budget before the Constitutional Court if parliament approves it. Finance Minister Ladislav Kamenický (SMER-SD) rejects that interpretation. He says the coalition has its own legal opinion and points to an exception in the constitutional legislation which, according to the government, allows the deficit to be maintained.
The budget has also faced criticism from Slovakia’s social partners. Trade unions and employers received the draft less than 24 hours before negotiations, although the rules normally require at least three days’ notice. The Republican Union of Employers therefore did not take part in the meeting.
Rastislav Machunka, representing the Association of Employer Unions and Associations, says that instead of stimulating the economy, the government is relying on further borrowing, with around seven billion euros in additional debt planned for next year. Machunka also criticises plans to increase public-sector employment. The state is expected to have more than two thousand additional workers compared with this year, while total personnel spending is set to rise by more than one billion euros.
Trade unions, meanwhile, point out that some public-sector salary tariffs remain below the statutory minimum wage. But higher wages would also put additional pressure on local and regional governments. The budget is now heading for parliamentary approval, where it is expected to face a heated debate between the governing coalition and the opposition.
Source: STVR
