Slovakia. Public finances long-term sustainability helped by Pension Reform
Slovakia’s public finances are heading towards long-term sustainability, RRZ President Ivan Šramko announced on May 3 when presenting its Report on Long-term Sustainability of Public Finance for 2016.
Yet the government should not ease its targets and its consideration for potential risks. These include the ageing population and growing expenditures in the health-care sector, reads the RRZ report, as cited by the TASR newswire.
The long-term sustainability of public finances in Slovakia posted a year-on-year improvement last year. “The state of long-term sustainability was – for the first time – achieved in the country in 2016,” Šramko said. When macroeconomic scenarios, demographic developments and current policies are taken into consideration, the cap level of the constitutional debt limit, i.e. 50 percent of GDP, should not be exceeded until 2066, he said.
“With the current policies, the debt should decrease below 20 percent of GDP over the next 20 years,” RRZ head stated. “This would create sufficient space for its rapid growth to the edge of its constitutional limit to come at the end of the monitored period when the impacts of negative demographic development start culminating,” he added.
Full Content: The Slovak Spectator
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