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Prime Minister Golob: "We have a deal. Lump sum funding will be raised to EUR 725 per resident."

Prime Minister Robert Golob and Minister of Finance and Public Administration Klemen Boštjančič met today, on 24 October 2023, with the representatives of the Association of Urban Municipalities of Slovenia, the Association of Municipalities of Slovenia and the Association of Municipalities and Towns of Slovenia. They discussed the lump sum funding per capita for 2024 and 2025.
Prime Minister Robert Golob

Prime Minister Robert Golob | Author Boštjan Podlogar/STA

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After the meeting, Prime Minister Golob said: "We have a deal. Lump sum funding for 2024 and 2025 will be raised to EUR 725 per resident."

An additional EUR 20 million for 2024 and EUR 34 million for 2025 will be disbursed among the municipalities according to a formula proposed by the Association of Municipalities and Towns of Slovenia. "This will cover the increase in costs in public institutions run by municipalities and we will start working on compensatory financing, because not all municipalities have the same costs or provide the same services for their residents," the Prime Minister pointed out.

The Prime Minister believes that no one is fully satisfied with such a compromise. "Such compromises are the best compromises," concluded the Prime Minister.

Negotiations were held in a difficult situation, as Slovenia was hit by its worst-ever natural disaster in August. The Government listened to the arguments presented by municipalities, who were well aware of the fiscal constraints in light of the damage and post-flood recovery. The Government has already provided financial assistance to the affected municipalities to help them recover from the floods.