Kamenicky: Not True That Consolidation Not Helping Public Finances

Bratislava, 4 May (TASR) - Claims that the current government's consolidation efforts aren't helping public finances aren't true, as the deficit has improved by more than 2 percent of GDP when compared to the condition in which the government took it over from its predecessors, Finance Minister Ladislav Kamenicky (Smer-SD) told a news conference on Monday, adding that the indicator for the long-term sustainability of public finances would also be higher today if the government were not implementing recovery measures. Kamenicky responded in this way to a report presented by the Budgetary Responsibility Council (RRZ) last week. According to it, the long-term sustainability of Slovakia's public finances slightly deteriorated last year and remains in the high-risk band. The indicator rose from a revised level of 5.3 percent of GDP in 2024 to 5.5 percent of GDP, or €7.9 billion, last year. This figure reflects the scale of consolidation measures needed to stabilise the public debt over the long term. "If we hadn't been consolidating after the villains who caused a breakdown in public finances, our long-term sustainability would be at 6.5 percent today. That's the result, that's the bill left by the previous government," stated Kamenicky. He also criticised RRZ for previously pointing to the impact of the pandemic and the energy crisis when long-term sustainability was worsening, while at the present time not sufficiently highlighting the war in Ukraine, US tariffs and the current crisis linked to the conflict in the Middle East. Kamenicky noted that the government originally managed to reduce the indicator to 4.1 percent of GDP in 2024. RRZ has now revised this figure to 5.3 percent of GDP, but this is mainly due to external factors, stressed the minister. "The government can't be blamed for everything. When foreign companies that have subsidiaries here aren't placing orders with these firms, of course there are problems. If we subtract 0.6 percent - that's the macro factor I am referring to - we would be in the medium band again: 4.7 percent in 2024 or 4.9 percent in 2025," added the minister. According to Kamenicky, the indicator has become worse also due to the salary hikes given to teachers and health-care staff, which the government agreed to. "We're being criticised for pursuing social policy," he stated. ko/df