A good financial year was not used to achieve the first balanced public administration budget
Bratislava, June 26, 2020 - The goal of a zero deficit and a balanced State budget in 2019 was not met and, in fact, public administration expenditures reached 1.22 bn euros more. Despite a slight increase in debt, Slovakia is not in the sanction zone. It is stated in the Statement of the Supreme Audit Office of the Slovak Republic (SAO SR) for the State final account, which Karol Mitrík sent the Parliament Members in accordance with the Law. As many as three thousand budget changes testify to unsystematic, formal planning and question the transparency of the budget process.
The Slovak Parliament approved The Budget 2019 with aim to achieve a balanced management of the entire public sector for the first time since the establishment of the independent republic. The revenues and expenditures of the public administration were budgeted at the same level, less than 37 bn euros. In reality, however, State and public institutions spent 40.4 billion in the previous year and the revenues lagged behind expenditures by 1.22 bn euros.
Thus, in its Statement for the draft State final account of the Slovak Republic for 2019, the national authority for external control states that the main budgetary objective defined by the Slovak Government and supported by members of the legislature was not met. Consolidated general Government debt increased and reached more than 45 bn euros at the end of last year, which in percentage terms means 48% of gross domestic product. Karol Mitrík, SAO SR President thus stated "despite the fact that the public administration debt increased last year, it got outside the sanction zone defined by the Constitutional Act on Budget Responsibility".
The full text of the press release about this audit in Slovak language is available here. Use the Google icon in the top bar for automatic translation into the desired language.