Crisis mitigation measures are important, but they will have a significant impact on budgetary developments
Bratislava, May 22, 2020 - The indicator of economic sentiment of Slovaks has dropped to the lowest level since 2009. Targeted support of the economy is necessary in the current situation and is not in conflict with the rules of responsible budget policy, states in the Slovak Supreme Audit Office quarter report. According to the Office's analysts, this year's budget is not only exposed to the risks caused by the pandemic.
Military purchases will have a significant impact, budgetary resources have not been prepared for the 13th pension, for the minimum pension and for the retirement age limit. The analytical report of the Office also draws the attention of the Government of the Slovak Republic to the risks of one-way orientation of our economy, which was fully confirmed by the corona crisis.
Public debt could thus rise to 60% of GDP. National auditors therefore recommend to revise expenditures and setting priorities for all ministries and state institutions. At the same time, the diversification of the Slovak economy, including ensuring food and fluid self-sufficiency of the country.
The full text of the press release about this topic in Slovak language is available here. Use the Google icon in the top bar for automatic translation into the desired language.