On the occasion of presenting the 2007-2008 draft amending budget, the Prime Minister of the Republic of Slovenia, Janez Janša, said that all amendments approved by the Committee of the National Assembly of the RS for Finance and Monetary Policy had been taken into account. By draft budgets for 2007 and 2008, the Government meets the set economic, social and intergenerational objectives of Slovenia's development as well as international positioning of Slovenia as a globally recognized country. Janša said that the Government aimed at creating conditions for more flexible economy, higher added value, higher employment, knowledge-based economic development, effective welfare state and balanced sustainable development of all Slovenian regions.
 

Photo by: Salomon 2000
 
The Prime Minister has underlined the fact that the results achieved by Slovenia this year in the economic area have so far been outstanding and, on the one hand, result from the capacity of the Slovenian economy, efficient conduct of economic policy and, on the other hand, favourable conditions in partner countries. "As of 1 January 2007, Slovenia will become the thirteenth new member of the European Monetary Union and will thus be the only new EU Member State to adopt euro as its national currency. This means an even greater achievement for the citizens of Slovenia since Slovenia fulfilled strict Maastricht criteria while enhancing economic growth, which in the first half of this year amounted to 5%, and simultaneously increasing employment," said the Prime Minister. He also added that Slovenia demonstrated that it was possible to reduce inflation and, concurrently, reduce the unemployment rate and increase employment.
 
The Prime Minister then summarized the latest IMAD autumn projections indicating positive economic trends to continue and pointed out that the Government of the Republic of Slovenia set the ambitious goals to relieve the Slovenian economy, already being implemented through tax change package and/or tax laws. Consequently, the new legislation will enable Slovenian enterprises to employ labour force at lower costs, notably highly educated staff, benefit from tax relieves for R&D and pay lower taxes. The Prime Minister noted that a tax procedure is to become simpler and thus less expensive. "We believe that such relief will boost economic and employment growth; this is the only way to achieve and surpass the average development level of the EU," said the Prime Minister.
 
The 2007 draft amending budget envisages, according to the Prime Minster, EUR 7.76 milliard revenue, accounting for 24.5% of GDP and EUR 8.08 milliard expenditure or 25.5% of GDP. The foreseen 2007 budget deficit amounts to EUR 322 million or 1% of GDP. "If compared with the estimated budget revenue and expenditure for this year, this accounts for a decrease in budget revenue amounting to 0.5% of GDP and a decrease in budget expenditure amounting to 0.6% of GDP. Within the EU financial perspective, the Government estimates that the budget revenue of the RS together with the EU budget will, in average, amount to 1.56 percentage point of GDP, while the outflows will amount to 1.13 percentage point in the period 2007-2011. Slovenia's net budgetary position vis-a-vis the EU budget is envisaged to stand at positive 0.43 percentage point," added Janša stressing that the Government of the Republic of Slovenia was aware that these additional funds were of significance to our development and, therefore, at the beginning of 2005 decided on numerous activities, which contributed to a better draw down of European funds; these measures proved to be very efficient.
 
The Prime Minister pointed out that the Government of the RS adopted significant measures, which would result in positive effects for all citizens; this was to be achieved in a socially sustainable manner. "In meeting Lisbon goals as well as the objectives set in the Development Strategy of Slovenia, the Government aims to provide macroeconomic environment which would make the Slovenian economy more competitive and faster growing and preserve the welfare state," concluded Prime Minister Janša.