RUZ: Local Government Spending Has Almost Tripled in 18 Years

Bratislava, 2 July (TASR) - The expenditures of towns and villages (municipalities) and higher territorial units (regions) in Slovakia have almost tripled since 2007, according to analytical data on public finances compiled by the Republic Union of Employers (RUZ), which outline the long-term development of public finances in Slovakia, RUZ spokesperson Petra Podhorcova has informed TASR. While local government expenditures stood at €3.8 billion in 2007, they amounted to €11.2 billion in 2025. Even after adjustments for inflation, local government spending has increased in real terms by some 80 percent over the past 18 years. Incomes have grown at a similar pace, rising from €3.8 billion to €11.1 billion over the same period. Both the expenditures and incomes of local governments have long remained broadly balanced, as legislation allows municipalities and regions to create only minimal deficits and incur limited debt. The growth in spending also means an increase in the volume of finances flowing into local governments via local taxes, fees and shared tax revenues distributed from the state budget. "Local government expenditures have almost tripled in less than two decades. Despite this, people haven't seen a corresponding increase in the quality of public services," said RUZ vice-president Jozef Spirko. According to RUZ, the growth in local government spending again raises questions about how efficiently they function. Slovakia is a country with extremely fragmented local government - its more than 2,900 municipalities represent one of the highest levels of fragmentation in Europe. The smallest municipalities often spend a significant portion of their budgets on their own operating costs, including salaries and administration, leaving only limited space for development and services for local people. Larger local governments are able to deliver the same services more efficiently and with lower operating costs per capita. "Local government budgets are made up of fees and taxes paid by the public, entrepreneurs and their employees, so it's essential to seek savings and improve the efficiency of local government operations," said Spirko. ko/df