Bratislava – The upcoming state budget will be crafted in line with the fiscal regulations established by the European Commission (EC). The negative trends in the global economy are significantly impacting the Slovak economy and its management, as highlighted by Finance Minister Ladislav Kamenický (Smer-SD) during a press conference on Wednesday, according to TASR.
“We are taking responsible actions. We adhere to the fiscal rules set by the European Commission. Each of us has defined certain trajectories, and we will maintain communication with the European Commission. We cannot arbitrarily choose any deficit, as financial markets will respond accordingly. Our aim is to formulate next year’s budget in compliance with these fiscal rules,” Kamenický stated.
He refrained from discussing the specific budget details for now, citing global issues such as events in Greenland, the looming threat of new tariffs in international trade, and the stagnation of the German economy, upon which Slovakia’s economy relies.
“Following the spring forecast, where I will receive data regarding our tax collection and macroeconomic indicators, as well as projected economic growth, we will initiate the process of budget formulation,” Kamenický explained. He also announced that the Ministry of Finance plans to advocate for an amendment to the Budgetary Responsibility Act, often referred to as the debt brake.
The minister anticipates discussions about the proposed changes with opposition members as well. This amendment is a constitutional law that requires the backing of at least 90 legislators, indicating that support from some opposition members will be necessary in addition to the coalition’s support.
Kamenický noted that the need to revise the Budgetary Responsibility Act is also highlighted in the current report on Slovakia from the International Monetary Fund (IMF). (28 January)
Leave a Reply