Government approves state budgets for the next two years

In drafting the budget documents for the next two years, the Government took into account the draft Medium-term fiscal and structural plan of the Republic of Slovenia 2025–2028, the autumn economic forecast of the Institute of Macroeconomic Analysis and Development and forecasts by the bodies responsible for financial plans regarding the implementation of the Fund for the Reconstruction of Slovenia, European cohesion policy under the 2021–2027 Multiannual Financial Framework and other EU funding. The Government also took into consideration the launch of the new Multiannual Financial Framework for 2028–2034, which, according to the European Commission’s proposal, is expected to focus on results, following the model of the Recovery and Resilience Facility and the Common Agricultural Policy.

Substantively, measures aimed at promoting Slovenia’s development and prosperity, accelerating economic growth, combating corruption and organised crime, decentralisation, cutting red tape and strengthening security and defence will remain at the forefront in 2027 and 2028.

In line with the Coalition Agreement for the 2026–2030 term, fiscal policies will focus on ensuring stable, sustainable and predictable public finances, maintaining compliance with EU fiscal rules, gradually reducing debt and effectively supporting the absorption of EU funds.

Activities will also target a predictable, competitive and development-oriented tax and business environment without introducing new taxes, unless accompanied by tax relief in other areas to maintain the overall tax burden and ensure a stable and predictable tax environment. At the same time, there will be scope to adjust or introduce taxation of individual activities in response to market conditions and to levels of taxation comparable to those in other EU Member States, where there is a justified fiscal or development rationale.

"Our guiding principle is very simple: a stronger economy, a more efficient state and better opportunities in life for people – without placing any additional burden on the population," said Finance Minister Andrej Šircelj.

For 2027, revenue is projected at EUR 17 billion, 6.7% higher than in the budget adopted last year for the following year. Expenditure may reach EUR 19.4 billion or 6.9% more than in the adopted budget for 2027, while the budget deficit is projected at EUR 2.3 billion or 2.9% of GDP.

For 2028, revenue is projected at EUR 17.7 billion (3.8% higher than in the draft amendments to the 2027 budget), while expenditure is projected at EUR 19.4 billion (broadly in line with the draft amendments to the 2027 budget). In 2028, the deficit could reach EUR 1.7 billion or 2% of GDP.

Both draft budgets pursue the medium-term objective of public debt sustainability and maintaining the general government deficit below 3% of GDP. By continuing along the planned fiscal trajectory, public finances are expected to reach the balance after 2030 in line with the national fiscal rule.

Today, the Government also approved the draft Act Regulating the Implementation of the Budgets of the Republic of Slovenia for 2027 and 2028 to ensure smooth budget execution and  adopted the final accounts of the 2025 state budget.