Public Finance


General Government Budget


In Slovakia, the general government budget consists of:

  • the central government budget (of which a major part is the state budget) administered by the central government;
  • local government budgets administered by the bodies of local and regional governments (municipalities and higher territorial units);
  • budgets of social security funds covering social insurance and public health insurance; and
  • budgets of other general government entities (according to ESA95 methodology, state funds, property funds, public universities, Slovak television, Slovak radio and other institutional units are classified within the general government sector).

In recent years, Slovakia introduced several reforms aimed mainly at lowering the tax burden, improving the business environment, strengthening labour market flexibility and ensuring the overall efficiency and long-term sustainability of public finances.

Tax System Reform

In particular, the key changes in the tax system consisted of:

  • introducing a flat rate of income tax at the level of 19% (for individuals and legal entities alike) that replaced the previous corporate income tax rate of 25% and personal income tax rates ranging from 10% to 38%;
  • introducing a higher basic allowance for the taxpayer and a tax credit on children;
  • abolishing many exemptions, deductions, and special treatments in income taxation;
  • unifying VAT rates, likewise at the level of 19% (replacing the standard rate of 20% and reduced rate of 14%);
  • increasing the excise taxes to slightly above the minimum rates required by the EU;
  • abolishing the tax on dividends;
  • abolishing the tax on inheritances and gifts; and
  • abolishing the tax on the assignment and transfer of real estate (as early as 2005).

Fiscal decentralisation

Social assistance and family policy

Pension System Reform

First pillar: mandatory, PAYG, benefit-defined, administered by the government (Social Insurance Agency);

Second pillar: mandatory, fully-funded, contribution-defined, privately managed; and

Third pillar: voluntary, fully-funded, contribution-defined, privately managed, supported via tax allowance.

Healthcare Sector Reform

  • stabilization of the healthcare system to avoid the creation of a further funding burden;
  • systemic changes aimed at increasing the efficiency of health insurance; and
  • increasing the efficiency and quality of healthcare providers.

Public Finance Management Reform

The Slovak government has also instituted public finance management reforms, in particular:

  • multi-year budgeting;
  • programme budgeting;
  • establishment of the State Treasury; and
  • establishment of the Debt and Liquidity Management Agency.


06. 06. 2023
We have published the Terms and Conditions of new Government Bonds Issues 247. More
06. 06. 2023
With deep sadness in our hearts, we inform our colleagues, friends and acquaintances that on Monday, June 5th 2023, after a serious illness passed away at the age of 65 our dear Anička Páchniková. More
01. 06. 2023
The Slovak Republic successfully sold new 10 year Government Bonds worth total EUR 2 billion on 1 June 2023. More
01. 06. 2023
We have published the Monthly Report about the ARDAL´s activities, which includes summary of government securities as of 31 May 2023 and outlook for June 2023. More
09. 05. 2023
The next auction will take place on Monday 15 May 2023. The bonds 241 G, 242 M, 244 E and 245 C will be offered in this auction. More
02. 05. 2023
We have published the Monthly Report about the ARDAL´s activities, which includes summary of government securities as of 30 April 2023 and outlook for May 2023. More
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