At today’s 36th extraordinary session of the National Assembly, Prime Minister Janez Janša outlined to deputies the budget amendment of the Republic of Slovenia for 2008. He emphasised that the national budget had already shown a surplus last year; with the budget amendment for 2008, the Government aimed to create a surplus of €70m, or 0.2% of GDP. “We are reducing budget expenditure in order to improve the budget balance. Our planned saving policy in the area of public finance has positive effects,” said the Premier.

 

(Photo: Srdjan Živulovič/Bobo)

 

In his address, the Prime Minister outlined the major fiscal and macroeconomic indicators. Last year saw the highest economic growth in the history of independent Slovenia, amounting to as much as 6.1%. “This result is all the more important because high economic growth was already achieved in 2006 and 2005, 5.7% and 4.1% respectively. Last year, economic growth in Slovenia was 3.1 percentage points higher than the average for the countries of the European Union and 3.3 percentage points higher than the average for the countries in the European monetary union,” commented the Prime Minister. According to Mr Janša, Slovenia reached 91% of the gross domestic product of the European Union in 2007, equivalent to €22 300 per capita in terms of purchasing power.

 

Data on unemployment are also encouraging. According to the methodology of the International Labour Organisation, the unemployment rate in the first quarter of this year stood at 4.9%. At the end of 2007, the unemployment rate in Slovenia was 2.2 percentage points below the EU average. “Among the EU eurozone members, Slovenia, together with Netherlands, Ireland, Luxemburg and Austria, ranks among the countries with the lowest unemployment rate,” said the Prime Minister when explaining the budget amendment proposal.

 

The proposed budget amendment for 2008 provides for revenue of €8.88b, or 24.5% of GDP, and expenditure of €8.81b, or 24.3% of GDP. The anticipated 2008 budget surplus for Slovenia will be €70m, or 0.2% GDP. Compared to that initially anticipated, the expected 2008 budget revenue for Slovenia is €250m (or 0.5 percentage points of GDP) higher and budget expenditure €49.7m (or 0.1 percentage point of GDP) less.

 

With the proposed budget amendment, the Government will further restrict budget spending, which, combined with other money-saving measures, will reduce inflationary pressures and State indebtedness. More budget funds are earmarked for social protection, education and the protection of the environment and social heritage.