Slovakia Approves 2027 Budget With 4.94% GDP Deficit

The National Council of the Slovak Republic approved the 2027 state budget on Wednesday, with 76 of 78 present MPs voting in favor. The budget projects revenues of EUR 27.911 billion and expenditures of EUR 35.666 billion, resulting in a cash deficit of EUR 7.754 billion. The general government deficit is expected to reach 4.94% of GDP, an increase from the 4.4% forecast for the current year.

To reduce the deficit to 4% by 2029, the government must implement additional fiscal consolidation measures totaling 0.8% of GDP in 2028 and 1.4% in 2029. Key allocations include an 8.4% salary increase for state and public administration employees starting July 1, 2027, EUR 250 million to offset high energy prices, and EUR 482 million for social and family-support policies. The budget also designates EUR 100 million for climate change mitigation and drought combat.

Coalition MPs described the budget as a political compromise. Conversely, opposition representatives argued the plan fails to improve public finances and further increases the national deficit.