The presolidation measures presented will dampen government consumption and public investment, while many others will directly or indirectly restrict household consumption or investment in companies. This was stated by Matej Horňák, analyst of Slovenská sporiteľňa, in connection with the third consolidation package, which was presented on Tuesday by Minister of Finance Ladislav Kamenický (Smer-SD).
“Thus, GDP growth will undoubtedly be slower than it would be if consolidation would not take place. We are currently expecting the growth of the Slovak economy next year to the level of 1.3 %, with some consolidation we have already counted in our estimates. However, accurate impacts require more consistent processing, ”he said.
The result of the measures introduced will ultimately be the lower net incomes of the population and less free days. Other income taxes, which will be demotivational for the most earning employees who often bring the highest added value in the economy, are introduced into the taxation system. “Another problematic point is the temporaryness of some measures, which creates an additional need for consolidation in the future after their efficiency has been fired,” added the analyst.
Kamenický informed on Tuesday that The Consolidation Measures package for 2026 will contain 22 measures in the total amount of EUR 2.7 billion. Almost half, 1.3 billion euros, should be obtained by saving on state spending. The result should be a reduction in public finance deficit and gradual stabilization of public debt.
