For a long time, the issue of helping refugees from Ukraine was a subject of strong discussions in Slovak society. However, recent numbers from government analysts and the independent Budgetary Responsibility Council (RRZ) put an end to the arguments about whether Ukrainians are a burden to the economy. This year alone, the amount of taxes paid by Ukrainians will exceed the total expenses of Slovakia for helping refugees over all four years of the war.
Fiscal Plus for the State
According to the analysis, Ukrainians working in Slovakia will pay approximately 518 million euros to the budget this year in income tax and mandatory contributions to social insurance funds. Additionally, the state treasury will receive about 100 million euros in indirect taxes (VAT and excise duties) from their daily consumption.
On the other side of the scale are the state's expenses for aid, which are constantly falling. While 153 million euros were spent on humanitarian needs in 2022, last year this figure was already significantly less than 100 million euros.
"The state's income from the economic activity of Ukrainians in just one year significantly exceeds all the expenses of the Slovak Republic for aid throughout the entire conflict," reads a government document.
Lifeline for the Labor Market
Slovakia has been struggling with a severe labor shortage for years, and it is Ukrainians who have become the resource helping to keep industry and the service sector afloat. Today, one out of every three foreigners officially employed in the country is Ukrainian. In total, the number of foreign workers in Slovakia has reached a record high of 143,000 people.
Ukrainians are filling critical gaps not only in factories but also in the healthcare and service systems. In addition to adults who are already working, the country is also preparing future professionals: currently, over 17,000 Ukrainian students are studying at Slovak universities, which is more than half of all foreign students in the country.
Comparison with Neighbors
Slovakia is not alone in this positive trend. A similar situation is observed in the Czech Republic, where income from Ukrainian refugees began to outweigh state expenditures on them in the third quarter of 2023. Last year, during the first nine months, Ukrainians in the Czech Republic brought the budget over 900 million euros, while the expenses for their support were only about half of this amount.
Political Context
Interestingly, the economic successes of Ukrainian integration are happening against a backdrop of difficult political relations. Despite the significant fiscal benefit, Robert Fico's government maintains a tough stance: military aid to Kyiv from state reserves was stopped in the fall of 2023, and recently, emergency electricity supplies were also blocked in response to the halt in oil transit by the "Druzhba" pipeline. However, the numbers speak for themselves: despite political disputes, Ukrainians have become an integral and beneficial part of the Slovak economic mechanism.
