Structural Reforms and Economic Outlook of Slovakia slide image

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 キ 7
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