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The State budget responds to the challenges COVID-19 has brought to society

Bratislava, 13 November 2020 - The coronavirus and extraordinary security or economic measures taken at the national and international level are significantly reflected in the functioning of the State.

The risks posed by the COVID-19 pandemic are negatively reflected in the draft State budget for 2021, with the projected general Government deficit reaching 7.44% of GDP, i. e. EUR 7 bn.

This is a decrease of more than 2% compared to this year, as the deficit is expected to reach 9.7% of GDP by the end of December, which is almost EUR 9 bn. The SAO SR states that in its opinion on the draft budget sent by the President K. Mitrík to the Members of Parliament.

The performance of the economy has been declining since 2015 and Slovakia reaches only 75% of the EU average, while the neighboring Czech Republic reached 92% of the European average last year. When recalculating the public debt of the Slovak Republic per capita, we will get over EUR 10 thousand next year.

In the draft budget for 2021, the Government does not plan to take fundamental consolidation measures, which Karol Mitrík, the Supreme Audit Office of the Slovak Republic President, considers a good decision. 

"In this very challenging period caused by the dangerous COVID-19 disease, it is important that the Government supports the business environment with targeted economic incentives and, under clear rules, helps the subdued Slovak economy," adds the President of the national auditors.

The increase in general Government gross debt to 65% of GDP is a warning signal, but comes at a time of global pandemic, so it will be important to make effective use of public and European funds to mitigate its effects, maintain social peace and support economic recovery.

The full text of the press release about this issue in Slovak language is available here. Use the Google icon in the top bar for automatic translation. 

Read the Opinion on the draft state budget 2021 in the Slovak language in its entirety here.