Government proposes draft state budgets for 2020 and 2021
At today’s session the Slovenian government put forward the draft state budgets for 2020 and 2021. The draft budgets follow the fiscal rule that requires medium-term balance of general government revenues and expenditures without borrowing. Total state budget expenditures of EUR 10.35 billion are planned in the next year, which is 1.9% higher than set out in the revised budget for 2019, while revenues are planned to rise by 4.5% to just under EUR 10.82 billion.
In preparing the draft budgets for 2020 and 2021, which it is sending to the National Assembly for adoption and to the Fiscal Council for assessment, the government took account of the Ordinance on the framework for the preparation of the general government budget for the 2020 to 2022 period and the autumn economic forecast from the Slovenian Institute of Macroeconomic Analysis and Development.
Owing to the forecast slowdown in economic growth in the coming year, the government lowered the upper limit for permissible expenditure for 2020 in the draft state budget by EUR 100 million in comparison with the cuts approved in July, to EUR 10.35 billion, which is 1.9% higher than set out in the revised budget for this year. The draft budget for 2020 includes planned revenues of just under EUR 10.82 billion, which is 4.5% higher than in the revised budget for 2019. The planned state budget surplus for 2020 thus amounts to EUR 467.9 million, or 0.9% of GDP.
“The budgets for the next two years were prepared with an eye on the future, on well-being and stability. We used the most recent economic forecast and fiscal rule. We said a decisive no to excessive consumption and wastefulness,” said Minister of Finance Andrej Bertoncelj.
The proposed budget for 2021 includes planned revenues of over EUR 11.11 billion, which is 2.7% higher than in the draft budget for 2020. According to the plans, expenditure will reach just under EUR 10.46 billion, which is EUR 105 million higher than the expenditure planned in the draft budget for 2020. The planned state budget surplus for 2021 thus amounts to EUR 656.6 million, or 1.2% of GDP.
The government will send the draft budgets for the next two years to the National Assembly together with the accompanying documents – the budget memorandum for 2020 and 2021, the draft Budget of the Republic of Slovenia for 2020 and 2021 Implementation Act and other documents that are mandatory integral parts of the budget package.
The draft Budget of the Republic of Slovenia Implementation Act also includes lump sum funding for municipalities, set at EUR 589.11 for 2020, which is the highest to date, and EUR 588.30 for 2021. The draft act also sets out the annual bonus for pensioners for 2020, which will be paid out in the following amounts:
- persons receiving pensions up to EUR 500 will be paid an annual bonus of EUR 440;
- persons receiving pensions from EUR 500.01 to EUR 600 will be paid an annual bonus of EUR 300;
- persons receiving pensions from EUR 600.01 to EUR 700 will be paid an annual bonus of EUR 240;
- persons receiving pensions from EUR 700.01 to EUR 860 will be paid an annual bonus of EUR 190;
- persons receiving pensions higher than EUR 860.01 will be paid an annual bonus of EUR 130.
EUR 145 million will be allocated for annual bonuses for pensioners in 2020.