The Slovenia Times

Supplementary budget for 2020 raises expenditure by almost 30%


The supplementary budget, envisaged by 1 September as part of a March emergency act that gave the government wide discretion in the management of budget funds, earmarks EUR 2.6 billion for measure meant to mitigate the impact of the coronacriss.

An additional EUR 500 million will address the indirect effects of the epidemic, the government wrote, pointing to higher unemployment allowance payments, social security expenditure, costs stemming from interest on debt and investments aiming to kick-start the economy.

The bulk of the additional expenditure is going to the Finance Ministry, whose budget is increasing by EUR 2.1 billion to EUR 4.6 billion.

The expenditure of the Labour, Family, Social Affairs and Equal Opportunities Ministry is increasing by EUR 593.8 million to EUR 2.2 billion, the Health Ministry's by EUR 140.4 million to EUR 336.1 million and the Economy Ministry's by EUR 139.3 million to EUR 456 million.

Most other ministries are also to receive more funding, while the exceptions include the Defence Ministry (EUR 30.6 million less), the Culture Ministry (EUR 8.3 million less) and the Public Administration Ministry (EUR 7.7 million less).

The coronavirus epidemic and lockdown slashed budget revenue by what the government expects will be EUR 1.58 billion by the end of the year, making for EUR 9.19 billion in total revenue. The deficit would thus amount to EUR 4.2 billion or 9.3% of GDP.

The latest projections by IMAD, the government's forecaster, suggest Slovenia's economy will contract by 7.6% this year.

Slovenia expects EUR 941.4 million from the EU budget by the end of the year, which is EUR 129.9 million less than expected in the original government budget for 2020.

Slovenia has taken out about EUR 2.2 billion in fresh debt this year for stimulus measures. The supplementary budget envisages a total of EUR 776.1 million in debt interest payments, EUR 25.1 million more than thus far.


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