The Slovenia Times

Fiscal Council warns against tax cuts, increased spending


Thirty bills recently submitted in parliament would reduce budget revenue and increase spending. Passage of these bills would result in a "considerable deviation from fiscal consolidation", the Fiscal Council said.

These bills could cost the budget between EUR 150m and EUR 900m in the coming years, the council said, adding that this would only be sustainable with fresh borrowing.

This could in turn increase the yield on Slovenia's bonds and make borrowing even more expensive. "The government and the National Assembly must ensure the continuation of fiscal consolidation in these favourable conditions."

The council believes that Slovenia's fiscal policy should focus on reducing the country's high debt and creating reserves, especially in the face of an ageing population.

The situation is gradually improving after the financial crisis, but the general government sector is still in the red, the council said.


More from Nekategorizirano