WEBVTT 00:00:01.249 --> 00:00:04.477 Hello. Today, the Government passed 00:00:04.597 --> 00:00:08.524 a package of budget documents for years 2024 and 2025. 00:00:08.972 --> 00:00:12.858 Considering the worst natural disaster in our history, 00:00:12.978 --> 00:00:19.724 our priority is financing the rebuilding after the floods. 00:00:20.773 --> 00:00:25.854 The macro-economic situation is still uncertain 00:00:25.974 --> 00:00:29.724 because of the situation in the world, high inflation 00:00:30.586 --> 00:00:35.127 and especially because of catastrophic floods 00:00:35.247 --> 00:00:38.924 that affected most of Slovenia. 00:00:39.910 --> 00:00:43.626 According to the first assessments, we will need a couple of billions 00:00:43.746 --> 00:00:48.190 for rebuilding and helping people and the economy. 00:00:49.028 --> 00:00:55.857 We will need to allocate a significant amount of money to this 00:00:56.078 --> 00:01:00.990 because we will need to focus on rebuilding. 00:01:02.141 --> 00:01:04.990 Measures for rebuilding and help 00:01:05.493 --> 00:01:10.257 will also be financed with funds from the RRF 00:01:10.377 --> 00:01:15.824 and the EU Cohesion Policy for the 2021-2027 programmes. 00:01:17.177 --> 00:01:20.251 In the revised budget for 2024, 00:01:20.371 --> 00:01:25.957 we plan €14 billion of income and €16.2 billion of expenditures. 00:01:26.358 --> 00:01:31.879 This means the deficit will be €2.2 billion, 00:01:31.999 --> 00:01:35.257 which is 3.3% of the GDP. 00:01:36.532 --> 00:01:41.857 If we did not consider the consequences of the floods, 00:01:42.265 --> 00:01:48.199 the income would be half a billion lower 00:01:48.319 --> 00:01:51.757 and the expenditures would be €1.1 billion lower. 00:01:52.025 --> 00:01:55.336 This means the deficit would be €620 million lower, 00:01:55.456 --> 00:01:58.790 which is one percentage point of the GDP. 00:01:59.995 --> 00:02:05.747 In the budget for 2025, we plan €14.56 billion of income 00:02:05.868 --> 00:02:08.557 and €15.8 billion of expenditures. 00:02:08.817 --> 00:02:13.200 We plan the deficit of €1.26 billion, 00:02:13.320 --> 00:02:16.357 which is 1% of the GDP. 00:02:18.164 --> 00:02:20.990 The Government also drafted 00:02:22.227 --> 00:02:26.157 the Act on the Implementation of the Budgets for the years 2024 and 2025. 00:02:26.581 --> 00:02:31.990 In it, we defined the bonus for pensioners for 2024. 00:02:32.837 --> 00:02:37.427 The law stipulates that in 2024, 00:02:37.548 --> 00:02:41.336 the transfers will not be adjusted to the inflation. 00:02:41.729 --> 00:02:45.491 The same applies to the joint income, tax reliefs 00:02:45.611 --> 00:02:51.820 and income tax rates for 2024. The pensions will be adjusted 00:02:51.940 --> 00:02:57.524 already in January 2024. 00:02:58.846 --> 00:03:04.592 In the law, we also determined the amount of debt. 00:03:04.712 --> 00:03:10.638 In 2024, the debt can be €4.66 billion, 00:03:10.758 --> 00:03:14.024 and in 2025, it can be €4.35 billion. 00:03:14.870 --> 00:03:20.357 We also defined the average fee for municipalities at €700. 00:03:21.086 --> 00:03:24.976 If we reach an agreement with municipalities, 00:03:25.409 --> 00:03:29.357 the Parliament will change it with an amendment. 00:03:31.304 --> 00:03:35.057 It is time for questions. Who will be first? 00:03:36.653 --> 00:03:38.957 Metka Majer, Pop TV. 00:03:39.726 --> 00:03:44.870 We know the formula 00:03:44.990 --> 00:03:49.555 is 4%. The ministries try to save money, 00:03:49.675 --> 00:03:53.324 but the expenditures will be much higher. 00:03:53.506 --> 00:03:59.857 What did you agree on? 00:04:01.725 --> 00:04:07.019 I want to go two months back to July, 00:04:07.139 --> 00:04:10.557 when the Government passed the budget. 00:04:11.270 --> 00:04:13.956 If you look at that budget 00:04:14.077 --> 00:04:18.432 and compare it with the expenditures in 2023, 00:04:18.661 --> 00:04:24.024 you will see that we already reduced the spending, 00:04:24.659 --> 00:04:28.845 and not only because in 2023, before the floods, 00:04:29.183 --> 00:04:34.315 a big part of expenditures 00:04:34.435 --> 00:04:39.415 was planned to compensate the cost of living crisis 00:04:39.535 --> 00:04:46.357 because of high energy prices. We took the inflation into account 00:04:46.680 --> 00:04:50.933 and we already then did a lot 00:04:51.811 --> 00:04:58.624 with regard to the budget 00:04:58.845 --> 00:05:00.445 and adjusted everything. 00:05:01.306 --> 00:05:06.942 Then floods came, the biggest natural disaster in our history. 00:05:07.062 --> 00:05:11.229 We assess the consequences for public finances 00:05:11.434 --> 00:05:15.924 will be the same as in the time of Covid. 00:05:16.558 --> 00:05:21.224 We appealed to all budget users 00:05:21.680 --> 00:05:28.594 to find additional funding, 00:05:28.714 --> 00:05:34.924 although some were not happy already in July. 00:05:36.129 --> 00:05:42.557 We want to reduce the spending to help rebuilding after the floods. 00:05:42.942 --> 00:05:47.924 This is our main priority. 00:05:50.450 --> 00:05:55.906 We talked to the ministers behind closed doors. 00:05:56.026 --> 00:05:58.524 These talks were not pleasant. 00:06:00.932 --> 00:06:07.087 They all understand we need to reduce the spending, 00:06:07.715 --> 00:06:11.924 but they all see this possibility elsewhere. 00:06:12.325 --> 00:06:19.257 This is normal, therefore, the Ministry of Finance 00:06:19.478 --> 00:06:23.251 sent them a memorandum and demanded from them 00:06:23.371 --> 00:06:27.581 to lower the integral costs by 4% 00:06:27.701 --> 00:06:32.124 and wages by 2%. 00:06:32.244 --> 00:06:35.790 We coordinated it with the Ministry of Public Administration 00:06:36.449 --> 00:06:40.524 that is negotiating with trade unions. 00:06:42.495 --> 00:06:46.951 Responses were different. 00:06:47.712 --> 00:06:52.024 Most of the ministries listened to our appeal 00:06:53.454 --> 00:06:58.365 and some of them said they have huge problems 00:06:58.485 --> 00:07:02.824 with this demand, therefore, the Government 00:07:03.662 --> 00:07:08.781 held more meetings where these ministries told us 00:07:08.901 --> 00:07:15.624 which measures should be taken, so they could reduce the spending. 00:07:16.688 --> 00:07:19.967 The Government talked about it 00:07:20.087 --> 00:07:26.357 and revised the proposed measures. 00:07:26.859 --> 00:07:30.705 We approved some of them 00:07:30.825 --> 00:07:35.997 and for others, we decided 00:07:36.118 --> 00:07:42.852 not to support them. The measures are different 00:07:42.972 --> 00:07:47.070 and were suggested by different ministries. 00:07:47.190 --> 00:07:53.324 I will not list all of them, because it is less important 00:07:53.662 --> 00:07:56.974 which measures were not approved, 00:07:57.094 --> 00:08:02.757 but the ministers will tell you themselves, some already did. 00:08:04.087 --> 00:08:10.374 One part of measures is meant for social security, 00:08:10.577 --> 00:08:13.440 the other part of measures... 00:08:13.594 --> 00:08:19.034 An important part are measures 00:08:19.494 --> 00:08:23.627 for the field of science, research, development and economy. 00:08:23.907 --> 00:08:26.667 We have deceided 00:08:26.914 --> 00:08:31.047 that we won't cut the finances for science, 00:08:31.167 --> 00:08:36.380 because in the long run these funds and a combination of other funds 00:08:37.594 --> 00:08:42.314 for boosting the economy, start-ups and so on 00:08:42.507 --> 00:08:44.834 are the most important ones 00:08:44.974 --> 00:08:47.527 in the long run 00:08:47.774 --> 00:08:54.754 to increase influxes with providing a higher added value. 00:08:59.514 --> 00:09:03.814 Aleksander Kolednik. I would like to know, if it still as you've said. 00:09:03.994 --> 00:09:07.567 Would you need to amend the budget next year? 00:09:07.787 --> 00:09:10.414 What kind of reaction do you expect? 00:09:12.074 --> 00:09:18.247 For a whole year we are reminding on fiscal rules. 00:09:18.480 --> 00:09:20.987 They are undeniably back. 00:09:21.367 --> 00:09:27.880 Whether an agreement within ECOFIN, 00:09:28.227 --> 00:09:30.414 board of Ministers of Finance, 00:09:30.687 --> 00:09:32.987 shall be adopted, is hard to say now. 00:09:33.114 --> 00:09:38.947 In the last weeks these agreements are more intense 00:09:39.354 --> 00:09:42.100 on a level of the European Commission. 00:09:42.547 --> 00:09:47.940 I am an optimist and I believe that an agreement shall be made. 00:09:48.160 --> 00:09:53.880 It is very important for us, Slovenia is actively taking part. 00:09:55.240 --> 00:10:00.754 There are some solutions. Although the differences are in details, 00:10:00.987 --> 00:10:02.867 but very important for us. 00:10:03.067 --> 00:10:07.674 We have fiscal rules and they are written in the constitution, 00:10:07.820 --> 00:10:15.707 so there is no doubt what the basic parameters are. 00:10:15.920 --> 00:10:19.660 We followed those when preparing the budget 00:10:19.780 --> 00:10:23.707 that we had approved in July. 00:10:24.200 --> 00:10:30.654 Then the deficit in the percentage of GDP 00:10:30.987 --> 00:10:35.167 in the budget for the year 2024 was 2.3 %. 00:10:35.847 --> 00:10:40.740 And the deficit of the general government was 2.8 % of GDP. 00:10:41.007 --> 00:10:44.680 Europe is being interesting in this number 00:10:44.874 --> 00:10:48.700 and we have it written in our fiscal rules. 00:10:48.934 --> 00:10:55.014 Even after the floods 00:10:55.440 --> 00:10:58.974 we are maintaining the deficit 00:10:59.440 --> 00:11:02.380 which originates from revenue and expenditure 00:11:02.534 --> 00:11:05.914 that are not connected to the floods. 00:11:06.287 --> 00:11:11.447 The truth is that expenditure is a lot higher because of the floods. 00:11:12.714 --> 00:11:15.947 For almost 1.2 billion. 00:11:16.227 --> 00:11:19.380 To some degree the revenue is also higher 00:11:19.554 --> 00:11:22.467 for known reasons. 00:11:23.780 --> 00:11:29.507 It is a fact that, as far as floods and expenditure are concerned, 00:11:30.046 --> 00:11:34.727 we are planning in this budget... One moment, please. 00:11:34.920 --> 00:11:40.874 335 millions of 1.2 billion. 00:11:41.254 --> 00:11:46.694 Exactly 1.15 billion. It's already been divided to various departments. 00:11:46.860 --> 00:11:52.320 To the departments, where we managed to define 00:11:52.574 --> 00:11:54.967 to which projects they are referred to. 00:11:55.200 --> 00:12:00.074 Here, the Ministry of Infrastructure was the most exact one. 00:12:00.220 --> 00:12:04.687 It has made a list of tasks 00:12:04.927 --> 00:12:08.787 and expenses connected with this 00:12:09.554 --> 00:12:13.954 or revenue they will need to remedy the consequences of the flood. 00:12:14.214 --> 00:12:18.467 Some Ministries haven't been able to list all the work yet. 00:12:18.787 --> 00:12:25.294 We are planning a very big reserve on Ministry of Finance. 00:12:25.487 --> 00:12:29.240 This reserve shall be during the year reassigned 00:12:29.454 --> 00:12:37.407 to the items that we shall define until then. 00:12:37.814 --> 00:12:41.780 We are talking also about 00:12:42.074 --> 00:12:44.987 funds to remedy the consequences of the floods. 00:12:45.267 --> 00:12:48.927 Additional revenue and expenditure 00:12:49.234 --> 00:12:54.274 shall be presented transparently. Every Euro should be accounted for. 00:12:54.574 --> 00:12:56.680 From this perspective 00:12:58.220 --> 00:13:03.494 we have a very high reserve on Ministry of Finance. 00:13:04.194 --> 00:13:11.747 Later we will precisely define what it was spent for. 00:13:12.340 --> 00:13:16.474 We still believe we will have to amend the budget 00:13:16.727 --> 00:13:19.027 in the beginning of the next year. 00:13:20.380 --> 00:13:27.187 As far as budget planning is concerned, the problem is 00:13:27.980 --> 00:13:32.827 a natural disaster that became a priority. 00:13:32.960 --> 00:13:37.414 It happened in the beginning of August 00:13:37.654 --> 00:13:42.254 and we are obliged to prepare the budget until end of September 00:13:42.540 --> 00:13:47.434 and send it to the National Assembly with all corresponding documents. 00:13:48.360 --> 00:13:50.334 The data are better every week, 00:13:50.500 --> 00:13:54.227 but they still aren't completely accurate. 00:13:54.514 --> 00:13:59.080 It would be much easier to plan the budget at the end of the year. 00:13:59.260 --> 00:14:03.020 Then we wouldn't have to mend it. 00:14:03.314 --> 00:14:07.494 We made an estimation from the data and what was adopted in July. 00:14:07.680 --> 00:14:13.180 We added all the items that we now know about. 00:14:14.227 --> 00:14:19.774 In the last days we have changed a few things about expenditure. 00:14:21.080 --> 00:14:26.974 Until the end of the year we should know more. 00:14:27.287 --> 00:14:32.814 A very important part of this is the Act we are preparing. 00:14:33.160 --> 00:14:38.034 The Act of Remedy the Consequences and Development. 00:14:38.554 --> 00:14:43.994 For recovery, yes. This Act shall in great measure 00:14:44.827 --> 00:14:47.374 or completely define the measures 00:14:47.574 --> 00:14:50.934 that will again reflect on revenue and expenditure. 00:14:51.180 --> 00:14:56.394 A part of this shall be this Act 00:14:56.534 --> 00:15:01.974 and the other part the calculations of cost in certain fields. 00:15:02.187 --> 00:15:06.994 And of course, how many procedures 00:15:08.267 --> 00:15:13.880 are possible or realistic to implement. 00:15:16.334 --> 00:15:18.480 Go ahead. -Petra Sovdat of Finance. 00:15:18.647 --> 00:15:23.214 In the days after the floods I have asked you, 00:15:23.360 --> 00:15:28.760 if the government is planning to sell a state asset 00:15:28.920 --> 00:15:32.527 to remedy the consequences of the floods, 00:15:32.700 --> 00:15:36.467 which isn't unusual in the other states as well. 00:15:36.640 --> 00:15:39.974 Your answer: it won't be necessary, because there is enough money. 00:15:40.194 --> 00:15:46.914 Later you found quite a few additional charges. 00:15:47.200 --> 00:15:53.967 A bank balance sheet tax that is not in the budget yet. 00:15:54.107 --> 00:15:59.160 Probably it shall be, when the Act is adopted. 00:15:59.314 --> 00:16:04.793 And an additional encroachment on already acquired rights, 00:16:04.914 --> 00:16:07.788 which the Prime Minister spoke about yesterday. 00:16:07.909 --> 00:16:11.685 Why was there at no point any consideration 00:16:11.806 --> 00:16:13.806 of the sale of state property, 00:16:13.927 --> 00:16:16.600 which amounts to more than 10 billion? 00:16:16.721 --> 00:16:18.321 On the contrary, 00:16:18.442 --> 00:16:24.164 additional nationalisations of companies are planned. 00:16:24.285 --> 00:16:27.289 Especially in light of the fact that under this government 00:16:27.410 --> 00:16:31.595 quite a few personnel moves were made, 00:16:31.716 --> 00:16:38.699 which have a strange corporate background to say the least. 00:16:40.404 --> 00:16:42.478 Let me give a very short answer. 00:16:42.599 --> 00:16:47.899 We're talking about the budget, this is a completely different area. 00:16:48.020 --> 00:16:50.729 I'll start with your statement 00:16:50.935 --> 00:16:53.595 that you got an answer from me or from the ministry 00:16:53.716 --> 00:16:56.596 that there is enough money and that this is not necessary. 00:16:56.717 --> 00:16:58.402 You didn't get that answer. 00:16:58.523 --> 00:17:00.901 You interpreted it your way. 00:17:02.908 --> 00:17:05.001 I know what we answered. 00:17:05.706 --> 00:17:07.706 The other thing... 00:17:10.026 --> 00:17:11.800 We said several times 00:17:11.921 --> 00:17:14.787 that we would first look for our own money. 00:17:14.908 --> 00:17:18.220 But when you say that you will find your own reserves, 00:17:18.341 --> 00:17:20.507 everyone has their own idea of what it means 00:17:20.628 --> 00:17:23.848 to find these reserves. Even my colleagues in the Government 00:17:24.196 --> 00:17:27.691 have their own ideas of what it means. 00:17:27.933 --> 00:17:30.899 As I said before, 00:17:31.020 --> 00:17:34.358 we have now done some important work in the last month. 00:17:34.479 --> 00:17:36.108 It was also very tiring 00:17:36.229 --> 00:17:40.057 in terms of finding these reserves. Of course it's not finished yet. 00:17:40.213 --> 00:17:44.605 Like I said, we're legally bound by the Public Finances Act 00:17:44.726 --> 00:17:48.298 to present the budget to the National Assembly 00:17:48.419 --> 00:17:51.265 by the end of September. 00:17:51.667 --> 00:17:55.197 I have already announced it will probably need amending. 00:17:55.318 --> 00:18:02.555 This will not only contain a more precise definition 00:18:03.211 --> 00:18:05.605 of how the funds will be spent, 00:18:05.813 --> 00:18:07.614 it will also focus on the revenues. 00:18:07.735 --> 00:18:12.356 You mentioned the tax on the balance sheet total of banks. 00:18:12.477 --> 00:18:18.249 The budget cannot include 00:18:19.823 --> 00:18:25.275 legal measures 00:18:25.396 --> 00:18:30.613 that impact revenues or expenditures 00:18:30.734 --> 00:18:32.901 or bills that haven't been passed yet. 00:18:33.022 --> 00:18:35.342 When the bill is passed... 00:18:36.700 --> 00:18:42.093 This will very likely be part of the renovation act. 00:18:42.505 --> 00:18:47.095 Then we will also have the basis to amend the budget. 00:18:47.216 --> 00:18:53.406 As far as the question regarding state-owned companies, 00:18:53.527 --> 00:18:57.491 we haven't answered this question yet. 00:18:58.340 --> 00:19:02.497 Some time ago we were thinking about issuing a strategy, 00:19:02.618 --> 00:19:05.888 it will be put up for public hearing shortly. 00:19:06.077 --> 00:19:12.598 Of course, the question of sale or non-sale of state companies 00:19:12.719 --> 00:19:14.319 is a question of strategy, 00:19:14.440 --> 00:19:20.800 and then the annual management plan of individual companies. 00:19:21.392 --> 00:19:25.765 Another thing we're still working on, 00:19:25.906 --> 00:19:28.978 I cannot share the details. 00:19:29.099 --> 00:19:33.995 We're serious about finding our own funds first. 00:19:34.580 --> 00:19:39.247 One possibility are dividends from state-owned companies. 00:19:39.443 --> 00:19:44.507 But again, I wouldn't like to get ahead of myself. 00:19:45.668 --> 00:19:49.197 Each company must be considered individually. 00:19:49.318 --> 00:19:52.883 We don't want to threaten the future of these companies 00:19:53.004 --> 00:19:55.420 with an extraordinary dividend payment. 00:19:55.541 --> 00:19:58.691 But this is one of the likely sources. 00:19:58.812 --> 00:20:01.100 We will know in the following months. 00:20:01.221 --> 00:20:04.519 We're speaking about a couple of millions, 00:20:04.640 --> 00:20:08.652 while the state is sitting on billions of assets. 00:20:08.773 --> 00:20:10.945 I gave you my answer. -Go ahead. 00:20:11.066 --> 00:20:13.692 Minister, a very concrete question. 00:20:13.813 --> 00:20:16.896 Does this proposal foresee funds 00:20:17.017 --> 00:20:21.182 for strengthening active civil rights 00:20:21.303 --> 00:20:24.205 and empowering non-governmental organisations 00:20:24.326 --> 00:20:27.926 in the field of active civil rights? 00:20:28.047 --> 00:20:30.802 You will have to pose this question to the competent ministry. 00:20:30.923 --> 00:20:33.849 As the Minister of Finance, I don't know the budgets 00:20:33.970 --> 00:20:37.859 of individual departments in such detail. 00:20:38.308 --> 00:20:42.978 A short subquestion. What is your view of that? 00:20:43.099 --> 00:20:46.317 The Ministry of Finance is faced with a very demanding task 00:20:46.438 --> 00:20:51.015 to find the reserves due to the floods that have affected us, 00:20:51.136 --> 00:20:56.336 on the other hand, we see tenders worth ten million and more 00:20:56.457 --> 00:20:58.057 for things that... 00:20:58.178 --> 00:21:02.167 We don't really know what we're spending them on. 00:21:02.288 --> 00:21:06.305 Like I said before, as the Minister of Finance, 00:21:06.426 --> 00:21:09.280 in light of the event that took place, 00:21:09.401 --> 00:21:14.140 I believe it is necessary to find reserves wherever possible. 00:21:14.261 --> 00:21:19.129 But of course each of us sitting in this room 00:21:19.250 --> 00:21:22.447 has a different view of where those reserves are. 00:21:22.568 --> 00:21:24.914 Everyone we talk to... 00:21:25.099 --> 00:21:26.980 Also from the municipalities, 00:21:27.101 --> 00:21:30.488 where the negotiations are still ongoing. 00:21:31.611 --> 00:21:35.915 A large part of the expenses from the state budget 00:21:36.304 --> 00:21:38.693 in fact, probably the largest, 00:21:38.814 --> 00:21:43.355 will go for the rehabilitation of the municipal infrastructure. 00:21:43.476 --> 00:21:46.021 To the municipal budgets, 00:21:46.142 --> 00:21:48.498 and then for the rehabilitation of this damage. 00:21:48.619 --> 00:21:54.497 The municipalities keep saying that they understand, 00:21:54.618 --> 00:22:00.459 but they think their flat rate should increase by 10 or 15%. 00:22:00.580 --> 00:22:03.651 We all understand that costs must be cut, 00:22:03.772 --> 00:22:05.372 just not ours. 00:22:05.936 --> 00:22:12.594 The question about municipalities is still open, 00:22:12.715 --> 00:22:14.700 but I have to say that, 00:22:15.201 --> 00:22:21.087 even though these conversations were tiring and unpleasant, 00:22:21.208 --> 00:22:23.810 I still have to say in the end 00:22:23.931 --> 00:22:27.627 that as the Minister of Finance I am pleased. 00:22:27.998 --> 00:22:31.998 Most of the departments have shown understanding, 00:22:32.119 --> 00:22:36.564 even some of those that I personally did not expect them to. 00:22:36.685 --> 00:22:38.516 But as I said, where exactly... 00:22:38.639 --> 00:22:41.486 Apart from those things that I have already mentioned, 00:22:41.607 --> 00:22:45.956 some are already known in advance, which the act will define, 00:22:46.077 --> 00:22:51.002 but the competent ministers will explain the micro areas. 00:22:51.123 --> 00:22:55.501 How do you view the accusations that Minister Ajanović Hovnik 00:22:55.622 --> 00:22:58.102 is not distributing funds transparently? 00:22:58.223 --> 00:23:01.590 First questions about the budget please. 00:23:01.711 --> 00:23:03.711 Kaja, go ahead. 00:23:06.402 --> 00:23:12.104 So not all ministries gave an average of four percent? 00:23:12.225 --> 00:23:14.291 Did some give more? 00:23:14.412 --> 00:23:18.992 How much will these austerity measures amount to? 00:23:23.207 --> 00:23:26.739 It is relatively difficult to compare the numbers, 00:23:26.860 --> 00:23:29.737 because pure austerity measures are one thing, 00:23:29.858 --> 00:23:36.306 while measures required by different laws are another thing. 00:23:36.427 --> 00:23:44.302 But of course we can change legal requirements with an amendment. 00:23:44.423 --> 00:23:47.415 For example, there was quite a long debate 00:23:47.536 --> 00:23:49.757 about what I've mentioned earlier, 00:23:49.878 --> 00:23:52.486 the funds allocated to science. 00:23:53.885 --> 00:23:58.214 This is a typical area, where I can say very clearly... 00:23:58.869 --> 00:24:03.716 I believe Minister Papič will explain this in more detail. 00:24:03.961 --> 00:24:06.064 In 2024 we will have by far the most funds 00:24:06.270 --> 00:24:09.446 allocated to science in the history of Slovenia. 00:24:09.567 --> 00:24:13.048 We not only spared no expense, we added to them. 00:24:13.230 --> 00:24:18.590 That is why I say it is relatively hard to add and subtract. 00:24:18.824 --> 00:24:24.269 The funds for science in themselves have nothing to do with the floods. 00:24:25.652 --> 00:24:32.394 To give you at least a partial answer, 00:24:34.355 --> 00:24:36.724 when we discussed these measures 00:24:36.845 --> 00:24:43.214 and which ministries would have to interfere with certain rights 00:24:43.335 --> 00:24:50.296 in order to achieve the expected reduction in expenditure, 00:24:50.465 --> 00:24:54.676 I will just list the ministries we debated with the most, 00:24:54.797 --> 00:24:58.324 and then you can talk to the ministers 00:24:59.351 --> 00:25:03.537 about the measures that they will and will not implement. 00:25:03.658 --> 00:25:06.658 Again, I will not speak for sure 00:25:06.779 --> 00:25:10.691 about those who did not make the list, 00:25:10.855 --> 00:25:15.740 but they are the Ministry of Labour, Ministry of Public Administration, 00:25:15.861 --> 00:25:20.031 Ministry of the Environment, Ministry of Education, 00:25:20.238 --> 00:25:25.724 MGTŠ, MZI, Higher Education and Natural Resources. 00:25:26.818 --> 00:25:29.614 But those 600 million euros were raised? 00:25:30.654 --> 00:25:34.490 The government never mentioned 600 million euros, 00:25:34.611 --> 00:25:40.524 you added that up yourselves. It is actually quite complex. 00:25:41.967 --> 00:25:46.824 By 600 million you probably mean the funds for 2024 and 2025, 00:25:46.945 --> 00:25:51.459 that is what I gathered from what the media wrote. 00:25:53.365 --> 00:25:59.490 The savings and reallocations have not been completed yet. 00:25:59.611 --> 00:26:04.982 An area that we have not discussed yet are cohesion funds. 00:26:05.103 --> 00:26:08.050 We have not yet opened the cohesion funds, 00:26:08.171 --> 00:26:13.153 nor did we redistribute them as per the current priorities. 00:26:16.288 --> 00:26:19.579 The government has found, 00:26:19.700 --> 00:26:24.884 and I am sure you all know this very well, 00:26:25.337 --> 00:26:30.103 that these measures interfere with many areas, 00:26:30.470 --> 00:26:33.895 but the measures over the following two years 00:26:34.016 --> 00:26:37.462 will be worth several hundred million euros. 00:26:37.583 --> 00:26:39.618 How much? -Several hundred. 00:26:42.071 --> 00:26:45.376 Our estimates were larger. 00:26:45.497 --> 00:26:50.581 4% of the 2024 and 2025 budget amounts to more than a billion. 00:26:50.922 --> 00:26:58.735 But since the main issue is what the ministries gave up, 00:26:59.172 --> 00:27:01.687 it is September, 2024 is approaching 00:27:01.808 --> 00:27:04.539 and the ministries had certain budgets, 00:27:04.660 --> 00:27:10.063 could you list the five projects with the largest financial impact 00:27:10.184 --> 00:27:16.522 that had their funding reduced? 00:27:17.756 --> 00:27:20.506 As I said, other than the projects 00:27:20.627 --> 00:27:24.648 for which the government discussed in the past few weeks 00:27:24.769 --> 00:27:28.117 whether it makes sense to implement them, 00:27:29.209 --> 00:27:35.670 the ministries did not discuss their individual projects. 00:27:36.052 --> 00:27:40.700 For instance, I do not know which projects the Ministry of Defence 00:27:40.821 --> 00:27:44.106 will not implement due to the decreased budget. 00:27:44.227 --> 00:27:47.364 You will have to ask the Minister of Defence. 00:27:47.485 --> 00:27:50.897 I did not mean the projects specifically. 00:27:51.018 --> 00:27:57.055 Does the biggest impact come from the non-reconciliation of salaries 00:27:57.176 --> 00:28:02.007 or perhaps the elimination of sick leave compensation? 00:28:03.188 --> 00:28:06.266 Since you mentioned sick leave compensation, 00:28:06.387 --> 00:28:07.993 the Ministry of Health 00:28:08.114 --> 00:28:11.485 is already facing one of the biggest challenges. 00:28:11.606 --> 00:28:18.057 It is one of the biggest budget spenders 00:28:18.178 --> 00:28:21.610 for reasons that are already known. 00:28:22.349 --> 00:28:27.954 The Ministry of Health faced a significant challenge 00:28:28.405 --> 00:28:36.053 even before this additional 2% or 4% reduction, 00:28:36.327 --> 00:28:41.577 so it is not all indirectly tied to the floods. 00:28:42.350 --> 00:28:47.850 I will let them comment the measures they intend to implement. 00:28:48.061 --> 00:28:49.920 But you manage the budget. 00:28:50.041 --> 00:28:53.397 You made the breakdown and negotiated with them, 00:28:53.518 --> 00:28:56.587 why should the ministries answer themselves, 00:28:56.708 --> 00:28:58.792 as you are also involved? 00:28:59.592 --> 00:29:05.424 As I said, it is largely the ministry's decision 00:29:05.694 --> 00:29:09.764 which things are easier or harder to do 00:29:09.885 --> 00:29:13.499 and which ones will have long-term negative effects. 00:29:13.620 --> 00:29:21.358 Of course we all tried to not make reductions in those areas. 00:29:23.561 --> 00:29:26.724 Jan Barlič. I just have a technical question 00:29:26.845 --> 00:29:34.194 You mentioned the budget deficit due to the costs of recovery. 00:29:34.315 --> 00:29:40.010 What will be the public financial deficit in 2024 and 2025, 00:29:40.131 --> 00:29:43.702 since the recovery will take 5 to 10 years? 00:29:44.194 --> 00:29:49.788 What are your expectations for the public financial deficit? 00:29:51.014 --> 00:29:54.655 According to the budget that the government confirmed today 00:29:54.819 --> 00:29:59.069 the state sector's deficit in 2024 will amount to 3,8%. 00:29:59.920 --> 00:30:01.600 Without the floods 00:30:01.721 --> 00:30:06.221 it would amount to 2,8% in both income and expenditure. 00:30:07.108 --> 00:30:11.957 According to the applicable European rules 00:30:12.319 --> 00:30:17.029 for natural disasters that exceed a certain percentage of the GDP, 00:30:17.150 --> 00:30:20.131 which this natural disaster does, 00:30:20.694 --> 00:30:27.241 for two years after the disaster you have the option 00:30:29.916 --> 00:30:34.705 for expenses, as well as income, 00:30:35.986 --> 00:30:41.306 but the deficit is affected mainly by expenditure, 00:30:41.427 --> 00:30:44.924 which is significantly larger than the income, 00:30:47.391 --> 00:30:50.609 to be counted as "one-off" expenses, 00:30:50.914 --> 00:30:53.886 even in the case of floods. 00:30:54.007 --> 00:30:58.257 This was also the case with the earthquake in Italy, 00:30:58.719 --> 00:31:03.636 the floods in Germany, Greece ... It is the same everywhere. 00:31:03.945 --> 00:31:08.112 These expenses inevitably count toward the deficit, 00:31:08.297 --> 00:31:12.790 but part of this one-off expenditure and income 00:31:13.180 --> 00:31:16.430 is counted separately, with an asterisk, 00:31:16.734 --> 00:31:19.992 and is not counted in subsequent calculations. 00:31:20.188 --> 00:31:23.219 Our deficit will stay as it is, 00:31:23.375 --> 00:31:30.857 however, and this is tied to the agreements on new fiscal rules, 00:31:31.278 --> 00:31:37.590 the Commission will not count this part in its calculations in 2024. 00:31:37.711 --> 00:31:43.755 Of course, the European Commission thoroughly checks the expenses, 00:31:43.911 --> 00:31:48.745 whether they truly are one-off expenses for flood recovery, 00:31:48.866 --> 00:31:53.200 so that States do not include any unrelated expenses. 00:31:55.261 --> 00:32:01.261 The European Commission expects us to implement certain reforms, 00:32:01.425 --> 00:32:06.207 which are the condition for drawing from European funds. 00:32:06.616 --> 00:32:13.514 Do the 2024 and 2025 budgets 00:32:13.617 --> 00:32:19.507 foresee a fiscal, healthcare or pension reform? 00:32:22.366 --> 00:32:28.820 Are there any concrete numbers? Will some incomes be lower? 00:32:30.867 --> 00:32:35.606 Nothing in detail. For that to be the case, 00:32:36.281 --> 00:32:39.879 the reforms should have been written already. 00:32:39.973 --> 00:32:45.293 The reforms don't just have consequences for the budget, 00:32:45.781 --> 00:32:49.824 but for individual budget items. The budget has to be carefully planned. 00:32:51.367 --> 00:32:56.910 I wouldn't want to give any promises about reforms. 00:32:57.367 --> 00:33:00.777 Despite the floods, healthcare is our priority. 00:33:00.898 --> 00:33:06.293 Obviously, the floods have become the first priority of the Government, 00:33:06.617 --> 00:33:11.695 we don't hide from that and we all agree on it. 00:33:13.765 --> 00:33:19.280 That's why some unpopular measures will be confirmed in the future. 00:33:19.788 --> 00:33:25.530 But healthcare is the Government's first priority. 00:33:28.749 --> 00:33:36.679 Primarily because of the suboptimal service. 00:33:38.679 --> 00:33:40.937 The issues are well-known. 00:33:41.058 --> 00:33:47.820 On the other hand the financing of healthcare is far from effective. 00:33:49.367 --> 00:33:53.606 This is a priority. 00:33:54.428 --> 00:33:59.348 In the last few weeks the Ministry for health 00:33:59.469 --> 00:34:01.629 has done a tremendous job. 00:34:02.617 --> 00:34:09.066 It is only partially connected to the floods. 00:34:09.616 --> 00:34:15.583 The things they have announced and put in practice are largely 00:34:16.867 --> 00:34:20.036 connected to necessary changes in healthcare. 00:34:21.436 --> 00:34:28.460 I wouldn't go further into detail. 00:34:28.867 --> 00:34:32.835 I would just like to say: change is necessary. 00:34:39.007 --> 00:34:46.703 You said you'll be saving several €100 million. 00:34:47.367 --> 00:34:52.460 Can you comment on that? 00:34:52.616 --> 00:34:59.074 I don't want to purposefully avoid talking about numbers. 00:35:00.507 --> 00:35:05.176 The process is very complex. 00:35:05.397 --> 00:35:09.772 When we're talking about the budget, we can exclude certain projects, 00:35:09.893 --> 00:35:13.334 change a law or two 00:35:13.866 --> 00:35:18.670 and discontinue covering for certain expenses from the budget. 00:35:19.031 --> 00:35:25.575 In the last few weeks, the complexity of the situation has shown itself 00:35:25.944 --> 00:35:32.411 during discussions on what really matters. 00:35:33.117 --> 00:35:38.449 Like I said, it's not the only field. 00:35:38.709 --> 00:35:44.743 If I compare it to the July budget cut, 00:35:46.367 --> 00:35:53.010 some fields, and I've mentioned which before, 00:35:53.687 --> 00:35:59.982 especially funding for development, science and developmental economy 00:36:00.422 --> 00:36:02.942 will be several times higher. 00:36:03.337 --> 00:36:11.032 That's why it's hard to talk numbers. 00:36:11.153 --> 00:36:15.324 It also depends on the Ministries. 00:36:17.757 --> 00:36:23.738 We need to know if the funds pertain to the flooded areas. 00:36:24.366 --> 00:36:29.411 Yesterday, we received many questions about that. 00:36:29.982 --> 00:36:33.528 How much will we inject into developing this area? 00:36:33.685 --> 00:36:39.591 I can't say whether the area is in danger of flooding. 00:36:40.116 --> 00:36:44.567 I believe my colleagues 00:36:45.203 --> 00:36:48.794 will tell you what they've been working on. 00:36:48.915 --> 00:36:53.169 We're not talking only about the cuts here. 00:36:55.616 --> 00:36:57.887 I'd like to expand on that. 00:36:58.008 --> 00:37:04.113 In light of this being the case in our neighbourhood, 00:37:04.234 --> 00:37:10.813 and because there are warnings about decreased consumption, 00:37:11.233 --> 00:37:16.727 have you considered relieving the pressure on workers? 00:37:17.366 --> 00:37:22.512 Can we expect a fiscal reform regarding personal income tax? 00:37:23.030 --> 00:37:29.012 I know you haven't been in favour of that and stopped it last year. 00:37:29.507 --> 00:37:33.320 But times have changed. 00:37:36.367 --> 00:37:42.566 We've said several times that the Government will deal with it. 00:37:42.867 --> 00:37:48.215 I'll comment on that when I know more. 00:37:48.367 --> 00:37:55.981 I can't comment on suggestions that we receive 00:37:57.086 --> 00:37:59.752 from certain stakeholder groups. 00:38:00.367 --> 00:38:04.713 It's a very complex field that will be dealt with. 00:38:05.117 --> 00:38:11.088 I don't want to announce anything. 00:38:11.364 --> 00:38:15.107 My answer will sound political, but it is not. 00:38:16.303 --> 00:38:21.477 We'll be talking about concrete measures when it's time for that. 00:38:21.922 --> 00:38:26.071 You'll understand what I meant by that. 00:38:27.693 --> 00:38:33.725 If we forget about the floods, this Government has three priorities. 00:38:34.163 --> 00:38:38.452 Healthcare, education and young people. 00:38:43.617 --> 00:38:47.881 As I said, changes are coming. 00:38:49.117 --> 00:38:52.747 An estimate is then 2024 or 2025? 00:38:53.187 --> 00:38:59.239 I believe that the necessary changes 00:38:59.968 --> 00:39:02.187 must happen next year. 00:39:02.983 --> 00:39:04.460 Thank you.