September 23, 2010 4:26PM 

# A Novel Way of Keeping Fiscal Deficits Under Control? 

By [Marian L. Tupy](https://www.cato.org/people/marian-l-tupy) 

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Having inherited an 8 percent budget deficit from the previous socialist government, the new conservative-liberal government of Slovakia has come up with a novel way of keeping budget deficits under control in the future. Starting in 2011, salaries of government ministers will rise and fall depending on the evolution of the fiscus. Thus, a budget deficit of 5 percent will translate to a 10 percent decrease in salaries, while an (unlikely) budget surplus of 5 percent will translate into a 10 percent rise in salaries, etc. It will be interesting to see if this new measure will truly result in a more responsible fiscal policy in the years to come.

Incidentally, had the United States adopted a similar measure, President Obama’s reported salary of $400,000 in 2009 would have fallen to $320,000 in 2010.

##### Related Tags 

[Tax and Budget Policy](https://www.cato.org/tax-budget-policy) 

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