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President Peter Pellegrini signed the Slovak state budget for 2027 on Wednesday. The draft, approved by the National Council on 14 October, projects a fiscal deficit of €7.443 billion, equal to 4.94 % of gross domestic product (GDP). The deficit is expected to fall to 4.5 % in 2028 and 4 % in 2029, but the Ministry of Finance notes that additional consolidation measures will be required to keep the debt trajectory on target. The budget estimates total state revenues of €27.911 billion against expenditures of €35.6 billion, resulting in a cash deficit of €7.754 billion. Public‑sector revenue is projected at €63.343 billion with spending of €70.786 billion, yielding the same €7.443 billion deficit. The current‑year deficit, originally planned at 4.1 % of GDP, is now expected to be 4.37 % of GDP. The National Council also approved a 8.4 % salary increase for employees in state and public administration, effective 1 July 2027. The budget includes €250 million earmarked for compensation of high energy prices, and €100 million for measures against drought, water retention, and climate‑change impacts. Legislative changes are allocated €482 million, while social and family policy measures receive the same amount. The Ministry of Finance explained that these funds will cover the costs of social‑service reforms, assistance for people with disabilities, and one‑time payments for first‑time parents and birth contributions. “According to the current budget, this strategy will require measures amounting to 0.8 % of GDP in 2028 and 1.4 % of GDP in 2029,” the Ministry said. “Without them, the deficit would rise to 5.26 % and 5.41 % of GDP, respectively.” The Ministry also warned that, given the challenging economic conditions, halting the growth of public debt will take several election cycles. While consolidation measures are expected to curb debt growth, the Ministry stresses that fully stopping it would require the overall deficit to fall below 3 % of GDP. “By the end of the budget horizon, the gross debt is projected to reach 69.6 % of GDP if the fiscal targets are met and additional consolidation is implemented after 2027,” the Ministry added. “Failure to continue fiscal healing would push debt beyond the 70 % GDP threshold.” Article source: HN Online | Image credit: HN Online
President Peter Pellegrini signed the Slovak state budget for 2027 on Wednesday. The draft, approved by the National Council on 14 October, projects a fiscal deficit of €7.443 billion, equal to 4.94 % of gross domestic product (GDP). The deficit is expected to fall to 4.5 % in 2028 and 4 % in 2029, but the Ministry of Finance notes that additional consolidation measures will be required to keep the debt trajectory on target. The budget estimates total state revenues of €27.911 billion against expenditures of €35.6 billion, resulting in a cash deficit of €7.754 billion. Public‑sector revenue is projected at €63.343 billion with spending of €70.786 billion, yielding the same €7.443 billion deficit. The current‑year deficit, originally planned at 4.1 % of GDP, is now expected to be 4.37 % of GDP. The National Council also approved a 8.4 % salary increase for employees in state and public administration, effective 1 July 2027. The budget includes €250 million earmarked for compensation of high energy prices, and €100 million for measures against drought, water retention, and climate‑change impacts. Legislative changes are allocated €482 million, while social and family policy measures receive the same amount. The Ministry of Finance explained that these funds will cover the costs of social‑service reforms, assistance for people with disabilities, and one‑time payments for first‑time parents and birth contributions. “According to the current budget, this strategy will require measures amounting to 0.8 % of GDP in 2028 and 1.4 % of GDP in 2029,” the Ministry said. “Without them, the deficit would rise to 5.26 % and 5.41 % of GDP, respectively.” The Ministry also warned that, given the challenging economic conditions, halting the growth of public debt will take several election cycles. While consolidation measures are expected to curb debt growth, the Ministry stresses that fully stopping it would require the overall deficit to fall below 3 % of GDP. “By the end of the budget horizon, the gross debt is projected to reach 69.6 % of GDP if the fiscal targets are met and additional consolidation is implemented after 2027,” the Ministry added. “Failure to continue fiscal healing would push debt beyond the 70 % GDP threshold.”
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