The think-tank INEKO is offering a database of 150 consolidation measures to the public following the aim of increasing sustainability of public finances in the long run. Eighteen economic analysts from NGOs and public and private financial institutions evaluated them. As the think-tank said Slovakia broke through the first debt brake defined by the constitutional law on budget responsibility last year. In the previous week the Finance Ministry announced the unforeseen shortfall of public finances at €347 million (0.5 percent of GDP) in 2013 and at €611 million in 2014 (0.8 percent of GDP).
The Budgetary Responsibility Council warns that if further budgetary measures are not adopted the economic growth could slow down while unemployment along with risks for democracy could grow. Though experts hold differing opinions on possible solutions, according to INEKO they all agree that consolidation measures are necessary that would slash the general government deficit to a level sustainable in the long run. INEKO features the measures on its website while the increase of the value-added tax to 22 percent or the restriction of the provision of agricultural stimuli are considered by INEKO to be measures with the highest consolidation potential. The reduction of subsidies from Euro-funds and the launch of the privatization of the state railway freight company Cargo Slovakia are the most supported consolidation steps. The introduction of deductible items for social and health insurance levies is deemed the politically most passable option.
