UPDATE 1 — Slovak lawmakers approve government's 2027 election — year budget, widening deficit
(Adds details, PM and finmin comments from paragraph 2) Deficit to rise to nearly 5% of GDP next year Government opts against further consolidation measures Faces election in 2027 Critics warn of fast-rising debt in coming years PM Fico defends budget, saying cuts would hit economy Oct 14 (Reuters) — Slovakia's parliament on Wednesday narrowly approved a 2027 budget which widens the deficit to 4.94% of gross domestic product and ends consolidation efforts in an election year. The budget had been criticised by the opposition and the country's fiscal watchdog for risking spiralling debt in years ahead and foresees the widest deficit since 2024, up from a 4.1% target in the 2026 budget. The vote was a test for Slovak Prime Minister Robert Fico whose ruling coalition has faced internal fights weakening the government majority. The budget passed with 76 votes in the 150-member parliament. The 2027 budget will be the government's first without a fiscal consolidation package aimed at meeting EU fiscal rules that limit deficits to 3% of GDP. Fico has defended the budget, saying deficits of 4-5% of GDP are now commonplace in the EU. The government, he said, needs to keep spending on investm
94% of gross domestic product and ends consolidation efforts in an election year. 1% target in the 2026 budget. The vote was a test for Slovak Prime Minister Robert Fico whose ruling coalition has faced internal fights weakening the government majority. The budget passed with 76 votes in the 150-member parliament.
The 2027 budget will be the government's first without a fiscal consolidation package aimed at meeting EU fiscal rules that limit deficits to 3% of GDP. Fico has defended the budget, saying deficits of 4-5% of GDP are now commonplace in the EU. The government, he said, needs to keep spending on investments like hospitals, and on easing the burden of rising energy prices for households and businesses, and cuts now would worsen the economic situation. "This is a budget for the survival of Slovakia and its people in difficult times," he said in a video message on social media over the weekend.
8% growth next year, said the budget focuses on maintaining social standards, coming amid trade wars and US tariffs, wars in Ukraine and the Middle East, and turbulence in global energy markets that is driving up fuel and electricity costs. Spending will provide money to help ease energy price hikes, boost salaries and pensions, and fund drought and transport projects. The country's Council for Budget Responsibility has criticised a wider deficit coming as the economy grows. It said this week that spending planned on wages, pensions, and healthcare will hurt future budgets, and deficits could surpass 6% of GDP in the coming years without a return to consolidation.
4% in 2025 — which is below EU averages of around 80%. Debt would reach 70% by 2028 without a return to deficit-cutting plans, the watchdog said. com;)