Report on the Long-term Sustainability of Public Finances (April 2015)

Report on the Long-term Sustainability of Public Finances (April 2015)
In contrast to the two preceding years, Slovakia’s long-term sustainability of public finances in 2014 deteriorated. The main reason lies in the worse starting position, which was due to the year-on-year increase in general government deficit, even if adjusted for temporary effects. Long-term projections of the revenues and expenditures sensitive to demographic changes have not changed significantly. The fiscal policy easing worsened the long-term sustainability indicator, from 1.9 % of GDP in 2013 to 2.4 % of GDP last year. The change in the indicator already reflects the amendments in the tax legislation effective as of 2015; without them, the deterioration would have been worse.


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