Structural Reforms and Economic Outlook of Slovakia
Structural Reforms for Long-Term Development
ARDAL
The Slovak government remains committed and continues to implement structural reforms to
boost competitiveness and quality of life for the country.
EU Recovery and Resilience Plan
Investment plans from 2021-2026 in Slovakia will focus on
the following 5 key structural areas:
Better education
Healthy life
Effective public administration and digitalization
Green economy
Competitive and innovative economy
Slovakia is the fifth EU member state to be granted approval by
the EC for its Recovery and Resilience Plan.
Improving Tax Collection and Combating Tax Evasion
✓
VAT gap has decreased from 37% in 2012 to 16.6% in 2020
The decrease is primarily due to measures that increased
tax collection:
•
In 2020, online cash registers were introduced to
tackle evasion in sectors with the largest VAT gap
such as retail, hotels and restaurants
In addition, electronic invoicing is expected to be
introduced in June 2022
Value for Money (VfM) Initiative
Government initiative to raise public spending efficiency
(started in 2016)
Compulsory spending reviews of at least 50% of
government expenditures within the electoral cycle
Reinforced the Ministry of Finance mandate in 2020:
Strengthening the role of the VfM Unit in the investment
process and managing the investment centralized budget
Efficiency check of investment projects exceeding € 1mn
Expected Reform of Fiscal Responsibility Act
Implementation of multi-annual expenditure limits to
promote effective fiscal policy
Net debt basis to provide flexible liquidity management
Recalibrations of debt thresholds, escape clauses, and
respective sanctions
Stronger emphasis on analytical input into the budgetary
process
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