News

Early pensions have shaken the budget; the intention to reduce the deficit remains unfulfilled

Published: 13.09.2024
Bratislava, 13 September 2024 - This year's state budget reached a deficit of EUR 4 billion at the end of the first half of the year. Year-on-year, the state's economy deteriorated by more than a billion euros. The most significant burden on the budget is the expenditure provided by the Social Insurance Institution for old-age pensions, early retirement pensions, and 13th pensions or their valorisation. However, it is already evident that the sum of EUR 1.6 billion will not be sufficient, as more than 80% of this package has been spent in the first six months. The Supreme Audit Office (SAO) of the Slovak Republic states this in its report on the development of budgetary management in the first six months of 2024.

Despite the positive economic outlook, the current government is facing fiscal consolidation pressure. "From the perspective of our analysts and experts from the audit office, the key will be to strike a balance between the necessary deficit reduction and stabilisation of the public debt, as well as significant spending to support important investment projects. The challenge for the government is also to reassess spending for selected population groups, with figures showing that seniors are a heavily supported group. At the same time, there is a lack of balance with young families or people who, through no fault of their own, have found themselves in a social trap," says Ľubomír Andrassy, head of the SAO.

Read the full text of the press release about this issue in Slovak language.

Share: