20231102-IMF-Slovak_Republic_Technical_Assistance_Report-Fiscal_Transparency_Evaluation_69页_1mb

Fiscal Transparency Evaluation of Slovakia (IMF, 2022)

Overview:
Slovakia's fiscal transparency practices are generally strong, but there are areas for improvement. The evaluation highlights key strengths, gaps, and actionable recommendations.

I. Fiscal Reporting

Strengths:

• Comprehensive coverage of institutions in fiscal reports (99% of public sector entities).
• High-quality in-year reporting (daily budget execution data).
• Frequent publication of fiscal statistics and annual financial statements.
• Alignment with international standards (ESA 2010, IPSAS).

Gaps & Recommendations:

1. Valuation and Coverage:
   • Expand coverage to include public corporations (e.g., National Bank) and subsectors.
   • Improve natural resource valuation and use market-based asset/liability valuations.
2. Audit Process:
   • Transfer external audit responsibilities to the Supreme Audit Office (SAO) for compliance with IMF’s Fiscal Transparency Code (FTC).

II. Fiscal Forecasting and Budgeting

Strengths:

• Detailed macroeconomic forecasts and policy-oriented budget documentation.
• Established medium-term budget framework (MTBF) and expenditure ceilings.

Gaps & Recommendations:

1. Binding Ceilings:
   • Introduce constitutional amendments to enforce multi-year expenditure limits.
   • Enhance program budgeting by integrating performance indicators and spending reviews.
2. Transparency:
   • Publish data on multi-annual investment commitments and public-private partnerships (PPPs).

III. Fiscal Risks

Strengths:

• Public disclosure of specific fiscal risks (e.g., contingent liabilities, guarantees).
• Robust management of public debt (average maturity >8 years, low NPLs).

Gaps & Recommendations:

1. Risk Analysis:
   • Conduct probabilistic scenario analyses for macroeconomic and long-term risks (e.g., ageing population).
   • Publish annual consolidated statements on fiscal risks.
2. Natural Resources:
   • Quantify fiscal revenues and expenditures from natural resources.

Key Recommendations:

1. Strengthen external audit independence by involving the SAO.
2. Implement expenditure ceilings to improve fiscal sustainability.
3. Enhance public participation in budget processes and improve forecast reconciliation.

Conclusion:
Slovakia meets advanced practices in most areas, particularly fiscal reporting and risk disclosure. However, improvements in audit processes, valuation methods, and public participation are needed to align fully with international standards.