Stability Programme confirmed
The National Reform Programme was adopted last week and a decree laying out the budgeting framework for the period 2017-2019 was endorsed by the National Assembly yesterday.
Finance Minister DuĊĦan Mramor said that the Stability Programme "lists the measures necessary for the realisation of these targets."
The budget planning is geared towards achieving a balanced budgetary position over the medium term, with general government deficit targets set at 1.7% of GDP next year, 1% in 2018 and 0.4% in 2019.
The Stability Programme and National Reform Programme are complementary: the former focuses on macroeconomic development, fiscal policy and public finances, the latter on structural reforms.
The plans set out in the Stability Programme sum up existing government policies and plans.
On the revenue side these include improved collection of taxes, tax changes geared towards reducing the taxation of labour, and the gradual introduction of a real estate tax through 2020.
On the expenditure side the restrictive policy of public sector wages and restrained growth of social transfers are the key measures.
Some stop-gap measures adopted in the past will become permanent, others will be replaced with different systemic measures with similar effects.
Public investments will drop by 35% this year due to the transition to the new EU financing period but are expected to pick up in 2017, the Stability Programme determines.
EU member states must submit the national reform programmes and stability programmes for review to the European Commission, which will assess the plans and put forward recommendations.