Parliament Okays 2026 State Budget with Projected Deficit of 4.1 percent of GDP

     Bratislava, 21 October (TASR) – Parliament on Tuesday approved the Act on the State Budget for 2026, and also acknowledged the public administration budget framework for the years 2026-2028, with the public finance deficit expected to reach 4.1 percent of GDP next year, amounting to just under €6 billion — a decrease from this year's projected 5 percent of GDP.
        The cash revenues of the 2026 state budget are projected at €27.8 billion, with total expenditures amounting to €33.5 billion, resulting in a state budget deficit of nearly €5.8 billion.
        Total revenues of the 2026 public administration budget are estimated at €62 billion, or 43 percent of GDP, while expenditures are expected to reach €67.9 billion, or 47.1 percent of GDP. The resulting deficit would amount to €5.9 billion, or 4.1 percent of GDP.
        As part of the budget, Parliament also approved public expenditure caps for the next three years. In line with an amendment submitted by Daniel Karas (Smer-SD), the limits will be set at €61.8 billion for 2026, €62.8 billion for 2027, and €63.4 billion for 2028. The reduction from the originally proposed limits stems from changes to state-paid health-insurance contributions, the cancellation of state-funded social insurance for selected groups, and the reclassification of projected revenue from the tax amnesty as one-off income.
        MPs also approved a reduction of €622 million in the budget of the Health Ministry, reflecting legislative changes to the health-insurance law and adjustments to state contributions for insured individuals.
        Conversely, lawmakers rejected a proposal by Julius Jakab ('Slovakia'-For the People) to cut the Defence Ministry's budget by €300 million, with the aim of reallocating the funds to restore the original level of the child tax bonus.
        The budget also includes consolidation measures amounting to €2.7 billion. The Finance Ministry estimates that revenue-side measures will generate €1.4 billion, while the remaining €1.3 billion should come from spending cuts.
        In addition, already adopted legislative changes are expected to reduce social spending by €152 million. A further €535 million in savings is anticipated from public-sector spending, including a €160-million freeze on public administration salaries and €375 million in cuts across individual ministries and government offices, detailed by budget chapters.
        Local governments are expected to contribute to consolidation efforts by saving €130 million via reduced payroll and operational costs. An additional €420 million in savings is planned through better utilisation of EU funds for selected investments, specifically those intended to support households with energy costs.
        In the Act on the State Budget for 2026, the Finance Ministry reiterated its aim of continuing to reduce the public-finance deficit in subsequent years, targeting a level below 3 percent of GDP by 2028. Achieving this goal will require further consolidation measures estimated at 1.8 percent of GDP. Without these, the deficit could remain at around 5 percent of GDP in 2027 and only slightly below that level thereafter.
        A stabilisation of public debt is also expected by 2028, at around 64 precent of GDP. For this year, the public debt is projected to rise to 61.5 percent due to the expected deficit and a cooling economy. Despite the anticipated decline in the deficit next year, the debt trend will remain an upward one, with the public debt forecast to increase further to 62.8 percent of GDP.