Report on Compliance with the Fiscal Responsibility and Fiscal Transparency Rules

One of the core tasks of the Council for Budget Responsibility is to draw up and submit to the parliament its Report on Compliance with the Fiscal Responsibility and Fiscal Transparency Rules for the previous fiscal year.

The objective of the report is to provide information on whether all the rules laid down in the Fiscal Responsibility Act have been adhered to in the processes of budget preparation, execution and reporting.


Fiscal responsibility rules

  1. General government debt limit – The constitutional act sets the gross debt limit at 50% of GDP (and at 60% of GDP during the transitional period). The ‘sanction brackets’ are activated when the debt level reaches 10% of GDP below the constitutional limit. The sanctions are scaled up and cumulative.
  2. Specific provisions for municipalities and self-governing regions - If the total amount of debt of a municipality or a self-governing region reaches or exceeds 60% of its actual current revenues in the previous fiscal year, the municipality or self-governing region concerned shall pay a penalty imposed by the Ministry of Finance amounting to 5% of the difference between the total debt amount and 60% of its actual current revenues in the previous fiscal year. The state is not responsible, financially or otherwise, for the insolvency of any municipality or self-governing region.
  3. Long-term sustainability indicator and public expenditure ceiling – monitoring of compliance with the rules applicable to the calculation and publication of indicators.
Budget transparency rules
  1. The Tax Revenue Forecasting Committee prepares, at least twice a year, its forecasts of revenues from taxes and social contributions (by 15 January and 30 June of the current fiscal year). The Macroeconomic Forecasting Committee prepares, at least twice a year, its macroeconomic development forecasts (by 15 January and 30 June of the current fiscal year).
  2. The general government entities are obliged to prepare their budgets for at least three fiscal years; their budget proposal must also include the approved budget for the current fiscal year and data on the projected execution of the budget in the current fiscal year, as well as data on the actual execution of the budget for the past two fiscal years.
  3. The general government entities must publish the budget data referred to in point 1 within 30 days of the approval of their budget and within 60 days of the end of the fiscal year.
  4. The Ministry of Finances publishes, at least twice a year (by 15 February and 30 June of the current fiscal year), the forecasts prepared by the Macroeconomic Forecasting Committee and Tax Revenue Forecasting Committee.
  5. The general government budget contains the consolidated balance of the general government budget and the government debt management strategy, as well as information on tax expenditures, implicit and contingent liabilities, one-off effects and the fiscal performance of state corporations.
  6. The Summary Annual Report of the Slovak Republic contains information on the amount of the net worth of the Slovak Republic, balance of the general government budget, and evaluation on how the government’s debt management strategy targets have been met, including information on one-off effects and the fiscal performance of state corporations.

The CBR draws up and submits the report to the parliament by 31 August every year.

The CBR is obliged to submit the first report within 12 months of the election of all Council members, that is, in June 2013, which is ahead of the deadline of 31 August.

Report on Compliance with Fiscal Responsibility Rules (06/2013)

Report on Compliance with Fiscal Responsibility Rules (06/2013)

This report evaluates compliance with the fiscal responsibility and budget transparency rules, enshrined in the constitutional Fiscal Responsibility Act, in the fiscal year 2012. It is submitted to the Parliament outside the standard reporting cycle, within 12 months of the election of all Council members. All subsequent reports will be published by the standard deadline, i.e. 31 August.