Slovak Republic: Selected Issues

This Selected Issues paper compares the level, allocation and efficiency of Slovakia’s public spending to peer countries to identify areas for reform. Policy measures on the expenditure side can play a critical role in rebuilding fiscal buffers and easing fiscal pressures. Enhancing public spending efficiency, particularly in healthcare, offers significant potential to improve value for money. Cross-country comparisons show that Slovakia lags behind EU peers in healthcare efficiency, suggesting that even modest improvements could yield substantial fiscal savings given the sector’s size. Strengthening the integration of investment planning with the budget process can further enhance the efficiency and absorption of public infrastructure spending. In this context, the authorities are developing a national investment plan to support better project selection, prioritization, and monitoring through standardized milestones. Aligning investment strategies with broader structural reforms would ensure stronger policy coherence and effectiveness. Additionally, improving the targeting of social transfers—such as family benefits and energy subsidies—can generate fiscal savings while preserving their redistributive role and supporting efforts to reduce income inequality.