Next year's budget was approved by the government on Tuesday without an extensive debate, although two issue still remain open: the aid with energy prices and money for health sector, which will both need to be taken into account during the parliamentary vote on the budget, but not at the expense of the target deficit of 4.7 percent of GDP, which must be met no matter what, Finance Minister Ladislav Kamenicky (Smer-SD) declared after Tuesday’s government session.
"I reject any speculations on whether or not the consolidation is going to be carried out. We are consolidating, that's a necessity that we, unfortunately, must do, as we've inherited the worst budget within the EU and we must address that," underlined Kamenicky. If the consolidation were not to take place, the public debt of Slovakia would swell in the following years to 66 percent of GDP. "I dare to say openly that if the debt were to increase that steeply, we would find ourselves in a situation in which Slovakia might have problems with selling its bonds and could even find itself in a state of bankruptcy," he warned.
The government is supposed to submit the draft budget to Parliament every year by October 15. Parliament usually decides on it at its last regular session at the turn of November and December. "Until then, all legislative changes must be allowed to run their course and other things, such as the health sector and energy aid, must be tackled as well," claimed the Finance Minister.
According to the draft budget the general government deficit should drop to 4.7 percent of GDP next year, 3.7 percent of GDP in 2026 and 3 percent of GDP in 2027.
The Finance Ministry expects the public administration to close this year with performance €250 million, or 0.2 percent of GDP, better compared to the approved budget. The deficit should thus amount to €7.8 billion, or 5.8 percent of GDP, instead of the planned 6 percent of GDP.
Total revenues of the general government budget should reach €59.9 billion, or 42.8 percent of GDP next year, while total expenditure is budgeted at €66.5 billion, or 47.5 percent of GDP.
The state budget deficit should reach €6.4 billion in 2025, with total revenues projected at €27.6 billion and expenditures at €34 billion.
In order to achieve a gradual decrease in the deficit, additional consolidation measures amounting to 1.9 percent of GDP, or €2.8 billion must be presented by 2027, stated the Finance Ministry. "The consolidation measures presented by the government ensure meeting of the target in 2025. For the year 2026, the currently set budget deficit is higher by 0.4 percent of GDP, and by 1.9 percent of GDP in 2027," stated the ministry.
Within the approved budget, the government also set the public expenditures spending limit for next year at €61.15 billion, while it is €62.12 billion for 2026 and €63.11 billion for 2027. The next year's budgetary expenditures are below the set limit, while it will be necessary to achieve this by adopting additional consolidation measures in the following years.
"The 2025-2027 budget of the public administration has been prepared in line with the National Medium-term Fiscal and Structural Plan for 2025-2028, in which the government sets limits for the growth of net expenditures for four years, so that the deficit falls to 3 percent of GDP by the end of the electoral term," said the ministry.
Culture budget foresees expenditure of €529 million
The state budget for 2025 should have €529 million available for spending in the field of culture, with the most significant item of expenditure being the expenses of public institutions, in particular the public-service broadcaster STVR, and the second largest amount relating to the activities of partly and fully budget-subsidised organisations of the Culture Ministry, according to the draft state budget approved by the government at its meeting on Tuesday.
"Compared to the approved budget for 2024, the allocation represents an increase of more than €31 million, that is more than 6 percent," said the Finance Ministry that prepared the budget, noting that spending on culture was affected by several things - amendments to laws that increased the transfer for the Slovak Arts Council by more than €10 million, an increase in spending for STVR by €15.8 million following the GDP growth, as well as an increase in spending for the European Capital of Culture 2026 by €2.1 million.
The expenditure of public institutions makes up a budget line of €219 million, of which €157 million is for STVR. This is made up of a claimable contribution to STVR (0.12 percent of GDP) of €147.4 million. "The remaining expenditure of STVR up to €157 million is covered by its own revenue of €10.2 million, including almost €9 million as advertising revenue," added the ministry.
The 2023 amendment also determines the transfer by the Culture Ministry to the News Agency of the Slovak Republic (TASR) by the same mechanism of linking it to a percentage of GDP. The contribution of 0.0029 percent of GDP amounts to €3.6 million for 2025.
Security spending to exceed €2.6 billion in 2025
Expenditure on security and public order should exceed €2.65 billion next year, according to the draft state budget for 2025-27 that the government approved on Tuesday.
"The state protects the life, liberties and security of the population and justice in its territory through the forces and organisations in the judiciary. The police, firefighters and paramedics, whose activities are ensured by the Interior Ministry, and the prison service, which falls under the Justice Ministry, are included in the forces," the Finance Ministry said in its proposal.
Of the total, around €1.68 billion should be earmarked for security alone.
The judiciary should receive just under €590 million and the prison system around €383 million. The Justice Ministry could have a budget of around €388 million if the proposal is approved.
Almost €2.8 billion to be spent on defence in 2025
Next year 2 percent of GDP, or almost €2.8 billion, should go for defence next year, according to the 2025-2027 draft general government budget approved by the government on Tuesday.
NATO member states have committed themselves to invest at least 2 percent of their GDP in defence.
Almost the whole amount intended for the defence of the state should go to the Defence Ministry. "The Defence Ministry's expenditure for 2025 is budgeted at €2.78 billion, which is an increase of €167 million year-on-year (y-o-y)," stated the Finance Ministry.
According to the approved draft, the biggest projects launched by the Defence Ministry include the procurement of F-16 fighter jets, tracked combat vehicles and 8x8 armoured combat vehicles.
Slovakia has been budgeting 2 percent of its GDP for defence since 2023. In 2023 the defence sector spent 1.74 percent of GDP. "The Defence Ministry drew €280 million less on current expenditure and €32 million less on capital expenditure. Together with the money from previous years, it carried over capital expenses amounting to €126 million to the next year," wrote the Finance Ministry.
Almost €6 billion to be spent on education and research
More than €5.9 billion is expected to be spent on education, research, development and youth support in 2025, according to the draft state budget that was approved by the government on Tuesday.
Expenditure on regional education is projected to amount to €3.87 billion. Meanwhile, a total of €1.27 billion should be earmarked for higher education, of which over €67.6 million will be spent on performance contracts.
A sum of €552 million is projected to be spent on the area of science and technology.
€9.6 billion to be spent on healthcare in 2025
Health spending will reach €9.6 billion in 2025, a year-on-year increase of €691 million, or 7.76 percent compared to the approved budget for 2024, according to the draft state budget for 2025 that was approved by the government on Tuesday.
Expenditure on public health insurance is expected to reach €8.5 billion. Of this, the largest share is for health care, totalling €8.19 billion. Expenditure for health facilities will amount to €3.21 billion. The state is projected to pay €2.3 billion on behalf of its insurance policy holders.
Source: TASR
