RRZ: Sustainability of Slovakia's Public Finances Significantly Improved

Bratislava, April 30 (TASR) - The long-term sustainability of Slovakia's public finances significantly improved last year, mainly thanks to the consolidation measures adopted for 2025, Budgetary Responsibility Council (RRZ) representatives told a news conference on Wednesday, dedicated to results of the Long-term Sustainability Report for 2024. Its indicator dropped by over 2 percentage points (p.p.) year-on-year (y-o-y) to the current 4.1 percent of GDP, thus moving from the high to medium-risk zone. The indicator expresses the size of recovery measures needed to stabilise debt in the long term beyond the measures taken so far. In absolute terms, it currently amounts to €5.7 billion. "Consolidation measures approved in 2024 with effect as of 2025 had the biggest impact on the improvement of sustainability, particularly 1.8 percent of GDP. This was primarily a consolidation package that improved sustainability by 1.3 percent of GDP and a slowdown in the raising of salaries in public administration this and next year," stated the RRZ. The introduction of an excise tax on sweetened soft drinks and the increase in the excise tax on tobacco products also had a positive impact. Despite significant improvements in sustainability, Slovakia's public finances remain under significant pressure, stated the council. "Particularly concerning is the growth in the structural deficit, reaching 4.2 percent of GDP in 2024. This is due to an immediate increase in spending that is financed by anticipated savings in the future," stated the RRZ. The high deficit in the pension scheme, which will even more deepen over time, makes up more than half the burden on long-term sustainability, it added. ko/mcs