Position of the Rule of Law Initiative on Compliance with Fiscal Responsibility Rules
Organizations associated with the Rule of Law Initiative view with concern the actions of the Slovak government regarding the preparation of the general government budget for the years 2027 to 2029.
On September 23, 2026, the Government of the Slovak Republic approved a document stating that public expenditure related to addressing the aftermath of natural disasters and fulfilling international treaties exceeded 3% of GDP in aggregate in 2025. This finding is intended to allow for the application of an exemption from sanctions arising from the Constitutional Act on Budgetary Responsibility, including the obligation to submit a balanced or surplus budget.
However, the Council for Budget Responsibility pointed out that, based on the information provided, the application of this exception had not been sufficiently substantiated. At the same time, it highlighted the interpretation of the Constitutional Court of the Slovak Republic, according to which the use of the exception must be linked to circumstances that arose suddenly and unexpectedly, and for which it was impossible to prepare.
The Rule of Law Initiative considers it essential that constitutional rules be respected not only formally but also in accordance with their purpose and intent. Seeking ways to avoid obligations arising from a constitutional law—rather than transparently addressing the underlying causes that triggered them—sets a dangerous precedent.
The rule of law rests on the premise that rules apply equally and predictably to the state itself. When public authorities invoke exceptions to constitutional rules in making significant decisions, the application of such exceptions must be clearly justified, transparent, and supported by verifiable data.
Uncertainty regarding the legality of the budgetary process can have consequences extending far beyond the realm of public finances. For the business environment, it introduces an additional element of legal uncertainty and reduces the predictability of the environment in which companies make investment and long-term decisions.
The Rule of Law Initiative therefore calls upon the Government of the Slovak Republic and the Ministry of Finance of the Slovak Republic to strictly adhere to the Constitutional Act on Budgetary Responsibility and the relevant interpretation by the Constitutional Court of the Slovak Republic in their further actions, and to transparently present to the public the legal and factual grounds upon which they deem the conditions for invoking the exemption to be met.
Adherence to constitutional rules cannot be viewed as an obstacle to the formulation of economic policy. It is a fundamental prerequisite for the state’s credibility, legal certainty, and the stability of the business environment.
Read the original Slovak version of the post here.
