According to preliminary data, the state budget deficit for the first nine months of the year amounted to EUR -462 million, which is EUR 300 million lower than in the same period last year. According to the latest available estimate by the Ministry of Finance, the end-of-year deficit is expected to amount to EUR -1,407 million, which is EUR 814 million lower than foreseen in the current budget adopted in October last year. Such a large reduction confirms the Fiscal Council’s view that the deficit projection at the time of last year’s budget adoption was again exaggerated.
Excluding the direct effect of the intervention measures, the deficit amounted to EUR -70 million and was approximately EUR 60 million higher than last year. Total expenditure on intervention measures amounted to EUR 393 million, almost a third less than in the same period last year. According to the latest available estimate from the Ministry of Finance, this year, EUR 713 million is earmarked for intervention measures (excluding the Reconstruction Fund).
The growth in “core” expenditure (excluding intervention measures) was 8.3% and slightly higher than in the same period last year (7.5%). The main reasons for this year’s growth were the transfer to the Pension and Disability Insurance Institute of Slovenia (ZPIZ) due to the high regular pension indexation and the high growth in contributions to budgetary funds, in particular due to the establishment of the Reconstruction Fund.
On 30 September, the Fiscal Council received the draft state budgets for 2025 and 2026 and the draft Medium-Term Fiscal-Structural Plan 2025–2028. As the existing Fiscal Rule Act (ZFisP) is inconsistent with the changes to the economic governance system in the EU, the role of the Fiscal Council in the adoption of the budgetary documents is not clear until the ZfisP is amended. Nevertheless, we will provide an opinion on the draft Plan together with the assessment of the state budget proposals in accordance with the Public Finance Act by 20 October. The Committee on Finance of the National Assembly of the Republic of Slovenia will discuss the draft Plan at its session on 4 October 2024.