Employers' objections to the draft state budget

Employers' objections to the draft state budget

Slovakia's key employer associations voiced significant concerns over the proposed state budget. They argue that it focuses too much on raising money through higher taxes and contributions without cutting government spending enough. The National Union of Employer’s Vice President Mário Lelovský criticized the focus on raising revenues through higher taxes, particularly VAT, warning that Slovakia's effective tax collection rate is already falling. Federation of Employers´ Associations of the Slovak Republic’s Vice President Rastislav Machunka raised objections to the €460 million reserve in the budget, arguing that it could lead to politically motivated spending and that reducing it would help lower the deficit.

The Trade Union Confederation (KOZ), led by President Monika Uhlerová, also rejected the budget. According to her, the €525 million set aside for collective bargaining obligations might not be sufficient to meet commitments, such as bonuses and salary increases for public sector employees. If the state and local governments don’t resolve these funding issues, local governments may refuse to sign the agreements, which could disrupt labor negotiations—a situation that hasn’t happened before in Slovakia’s public sector.

Source: TASR

Patrícia Polakovičová, Photo: TASR

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