Spending on social affairs in Slovakia is expected to exceed 20 billion euros next year, around 400 million euros more than this year. Pensions will account for the largest share of social spending. According to Labour Minister Erik Tomáš (HLAS-SD), the budget includes plans to raise pensions for people over 85 to 700 euros a month. Around 38,000 seniors would benefit, at a cost of 32 million euros.
The government is also allocating 1.7 billion euros to support families. Planned measures include tax exemptions for mothers with four or more children and an increase of around 100 euros in the one-off birth grant, commonly known as the baby bonus.
However, the proposals have drawn criticism. Opposition MP Simona Petrík (PS) argues that direct financial payments alone will not encourage people to have more children. She says Slovakia should focus instead on making services more affordable and providing better support for low-income families.
Concerns have also been raised about the level of support available to people living in poverty. Martin Šuster, an economist at the Council for Budget Responsibility, says little has been done to improve benefits for people in material need. The basic benefit costs around 150 million euros a year, rising to roughly 300 million when additional support is included. Šuster says this is less than a third of the cost of 13th pensions, arguing that Slovakia is failing to adequately support people in extreme poverty despite presenting itself as a welfare state.
Even economist Villiam Páleník of the Slovak Academy of Sciences warns that 13th pensions are adding to pressure on public finances as debt and borrowing costs rise. He says borrowing to fund untargeted social benefits, rather than investing in the country's future, is a dangerous path. Páleník believes some of the money could be better spent on parental pensions, which he considers a fairer use of public funds.
Source: STVR
