President Signs Law on State Budget for Next Year

       Bratislava, 5 November (TASR) – President Peter Pellegrini signed the 2026 state budget law on Wednesday, 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.
        "President Peter Pellegrini has signed the 2026 state budget law today. He realises that the consolidation measures included in the budget, which amount to €2.7 billion, are a painful but necessary step that will contribute towards stabilising the public debt," stated the President's Office.
        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.
        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, as 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.