SaS Calls on Coalition to Support Proposal to Protect Local Governments

Bratislava, 30 October (TASR) - The opposition Freedom and Solidarity (SaS) party has called on the governing coalition to support a proposal to protect towns, municipalities and self-governing regions from debt-brake sanctions, arguing that local governments, which account for roughly 2 percent of the total public debt, shouldn't have to suffer the consequences of the state's level of debt, SaS announced on Friday. "[Prime Minister] Robert Fico and [Finance Minister] Ladislav Kamenicky have pushed Slovakia all the way to the strictest debt-brake sanctions. However, the bill for their management will be footed by towns, municipalities and regions, meaning the people who live there," said SaS deputy chairman and MP Marian Viskupic, adding that the state accounts for the remaining 98 percent of public debt. Viskupic pointed out that applying sanctions to local governments would limit their functioning, investments and the provision of services to residents, while local taxes could increase as well. Towns and municipalities are currently preparing their budgets for 2027, stated Viskupic, adding that a proposal to address the situation has already been submitted to Parliament. SaS vice-chair Ludovit Paulis also highlighted the need for reform in local government funding, as presented by SaS in its 'Restart Slovakia' programme. The party proposes an audit of public administration powers to establish the responsibilities of the state and local authorities, including with guarantees for appropriate funding. SaS is also pushing for fiscal decentralisation, with Paulis stating that the party wants to decouple local government funding from dependence on employees' income tax. When it comes to the distribution of funding, economic growth and value creation in individual regions should be taken into account. According to SaS member and local councillor for Kosice-Sever borough Marcel Giboda, the party's proposal is based on the demands of local government associations, including the Slovak Towns and Villages Association (ZMOS), and it's aimed at enabling towns and municipalities to draw up their 2027 budgets without jeopardising essential services and investments. jrg/df