Lies in the state budget

The government approved the 2020 public finance budget with a deficit of 0.5% of GDP. The deficit plan is well below estimates of the fiscal responsibility council RRZ, central bank NBS, and analysts (1-1.5% of GDP). The reason Finance Minister Ladislav Kamenický opted for a creative approach to the deficit is EU rules that allow just a 0.5% deficit. Even Kamenický admits further “restrictive measures” totaling €475m are needed to achieve the deficit target. No such measures are in sight, though. The budget underestimates spending by social insurer SP and state railways, overestimates dividend income, and counts on hiking tobacco tax that SNS rejects.

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