Rasi: Exempting Local Governments from Debt Brake Could Boost Economic Stability

Bratislava/Trnava, 24 October (TASR) – Exempting local governments from the parameters of the debt brake could support their economic stability, House chair Richard Rasi (Voice–SD) told TASR on Friday. Rasi added that he discussed this issue with representatives of the Slovak Towns and Villages Association (ZMOS), the Self-Governing Regions of Slovakia Association (SK8) and the Union of Slovak Towns and Cities (UMS) on Monday, 20 October. According to Rasi, the current framework doesn't allow towns and municipalities to fully develop and limits their ability to manage their own financial resources. "Local governments make up only a fraction of the public debt, yet they face strict restrictions that complicate their planning and development. That is why we must find a compromise that supports local governments while remaining responsible towards the state's economy," he added. Chair of the SK8 association and Trnava governor Jozef Viskupic told TASR on Thursday (23 October) that in his view local governments should be exempted from the application of debt-brake rules. He proposes that they should be governed solely by the provisions of the Act on Budgetary Rules of Local Self-Government, and therefore called for an amendment to the Constitutional Act on Budgetary Responsibility. mf/df