When drafting the initial version of the 2018 budget more than a year ago, the government had expected to collect EUR 409m less than projected by the most recent estimates.

The 2018 budget expenditure is also to increase, but by a much more modest EUR 53m. Total expenditure will amount to EUR 9.63bn while a year later, it will reach EUR 9.7bn.

Both in 2018 and 2019 Slovenia will record a budget surplus of around EUR 50m. "This will allow us to continue public finance consolidation and to pursue the goal of balancing the public finance by 2020," Finance Minister Mateja Vraničar Erman has said.

Slovenia has enshrined in its Constitution the golden fiscal rule, which prevents the government from abolishing all austerity measures, which was met with a lot of criticism from the opposition.

Unaffiliated MP and former Prime Minister Alenka Bratušek criticised the cabinet for increasing spending for wages in the public sector and material expenses.

The opposition Democrats (SDS) said that the improved economic situation should be reflected in lower taxes. The party had proposed amendments lowering VAT to the pre-crisis level, but the motion was rejected by the Finance Committee.

The 2018 budget abolishes all restrictions that have been imposed on child benefits. But the Left believes that the state should first focus on helping those in most dire need, pensioners and workers with too low wages.

The 2018 budget factors in a pension rise and an annual bonus for pensioners. But how much individual pensioners will get will depend on their basic pensions.

Bratušek believes this is unfair, saying that those with higher pensions will get less than they are entitled to by law. "Considering the good economic situation, we should close our ranks and make sure that austerity on pensioners stops."

The 2018 budget also abolishes some of the restrictions that have been imposed on hiring, promotions and pay raises in the public sector. Budget beneficiaries will be able to increase the number of employees by a total of 0.7%.

This means that 217 people will get jobs in public administration institutions that are suffering the greatest staff shortages. The finance minister has previously mentioned the Labour Inspectorate and border police units as the ones to benefit from this.

While all budget beneficiaries will receive more funds next year, the biggest increases are planned for transport and transport infrastructure, science and IT, healthcare, entrepreneurship and competitiveness.