Budget Council Finds Government's Fiscal Consolidation Plan Among Least Effective

Slovakia's Budget Council tested over 1,500 different approaches to consolidating public finances and found the current government's package to be among the unsuccessful ones. The independent fiscal watchdog determined that roughly one-third of the government's consolidation measures are being used merely to fix poorly designed policies. The analysis suggests that if Prime Minister Robert Fico's government continues with the same approach for two more years, an additional consolidation package will be needed. The Budget Council, which serves as Slovakia's independent fiscal oversight body, based its assessment on the government's strategy of relying primarily on higher taxation rather than spending cuts. Fico's Smer-SD party, which leads the ruling coalition, has faced criticism for its approach to addressing the country's budget deficit, with the council's findings highlighting potential long-term fiscal risks.