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38th ordinary session of the Government of the Republic of Slovenia

At today’s session the government adopted an itemisation of budget expenditure by individual budget spending unit. In line with the approved fiscal framework, the ceiling on state budget expenditure was set at EUR 10.45 billion for 2020 and EUR 10.46 billion for 2021. The government is drafting the budget with welfare and stability in mind, but will also take account of the fiscal rule.

Minister of Finance Andrej Bertoncelj | Author Tamino Petelinšek, STA

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In addition to the itemisation of budget expenditure, the government also adopted a budget memorandum for 2020 and 2021, which constitutes a basic framework for drafting the budgets for the next two years. It also set out the timetable for drafting the budgets for 2020 and 2021.

Budget spending units have until 29 August to draw up their proposed financial plans. The government also called on them to plan their spending entitlements to allow them to meet all their legal obligations, to plan their spending entitlements for commitments falling due in 2020 and 2021, and to focus their activities primarily on those types of investment that have the largest multiplier effect on economic growth.

The state budget for 2020 allows for an increase in expenditure of EUR 290 million as set out by the budget rebalance for 2019, while expenditure in 2021 remains virtually unchanged (an increase of EUR 5 million). This will allow all legal obligations and commitments from the agreement on public sector wages to be met, and for the spending of EU funds in line with the approved documents. It does not allow for any additional increases or new commitments without measures being taken at the same time to appropriately reduce expenditure. This ensures that the fiscal rule is upheld.

The government’s priorities in drafting the budget have focused on development projects, social security and wages. Finance minister Dr Andrej Bertoncelj said: “We are concerned with welfare and stability. We are upholding the law, and the fiscal rule. We have said a firm no to excessive spending.” The state budget surplus is forecast at 0.8% of GDP in 2020, and is expected to rise to 1.2% of GDP in 2021. Meanwhile the consolidated general government surplus is forecast at 1% of GDP in 2020, and 1.1% of GDP in 2021.

Source: Ministry of Finance

Improved normative framework for more effective fight against corruption

At today’s session the government finalised the draft bill for the Act Amending the Integrity and Prevention of Corruption Act, which modifies and augments measures used in the fight against corruption, with the aim of raising the level of integrity and limiting the risk of corruption in Slovenia.

The government feels that by providing a better normative framework the legislator can help make the fight against corruption more effective, thereby encouraging the Commission for the Prevention of Corruption to act even more effectively in performing its tasks in the area of integrity and the prevention of corruption.

Source: Ministry of Justice