"For the first time in history, Slovenia will end the year 2007 with a budget surplus," said the PM at today's press conference, adding that at the last regular cabinet session in 2007 the Government had focused on measures which will be put forward in 2008 with a view to helping those Slovenian citizens who were the most affected by recent food price rises.

 

(Photo: Primož Lavre/Salomon 2000)

 

According to the PM, the budget surplus of nearly 30 million euros is the result of economic measures, reduced spending in some ministries, and higher economic growth. Despite the disaster clean-up operation after September's floods and the costs related to preparations for the EU Presidency, Slovenia is concluding the year, for the first time in history, with a positive fiscal balance. The pension fund will also conclude the year without losses, while the health fund will see a surplus of several tens of millions of euros. In addition, municipal budgets will also have recorded surplus. The PM took the opportunity to reject criticism about higher consumer prices in Slovenia being the result of excessive government spending.

 

PM Janez Janša also presented two Government measures aimed at protecting the most vulnerable – pensioners and those receiving minimum wages – in the light of the recent rises in consumer prices. He said that the Government had approved a draft Income Supplement Act to provide assistance to some 50,000 pensioners, and draft amendments to the Personal Income Tax Act to provide special tax relief for taxable persons in the lowest band. The PM stressed that the Government has several other measures in store, which will be implemented at the beginning of 2008, should the unfavourable inflation trends continue.