The Slovenia Times

Govt Adopts 2014 Supplementary Budget, Deficit Climbs to 3.4%


The goal of the revision is to make sure the budget is implemented according to the law through the end of the year, Finance Ministry State Secretary Mateja Vraničar said.

The Finance Ministry estimates that budget revenue will be EUR 8.6bn, which is EUR 20.2m less than initially expected.

The gap emerged after the Constitutional Court scrapped a new real estate tax imposed by the previous government and Slovenia received about EUR 100m less than planned from the EU budget.

On the other hand, the country collected more money than expected through VAT and from licences for 4G mobile services.

The supplementary budget will meanwhile increase reduce expenditure, by EUR 177m to EUR 9.8bn.

Because it is too late in the year to introduce structural measures, there will be reshuffling of expenditure between departments, according to Vraničar.

The supplementary budget is accompanied by the amended budget implementation act.

Although this act is technical, it also includes a provision that will accelerate the drawing of EU funds, according to Vraničar.

The government also proposes that the borrowing be raised from EUR 4.9bn to EUR 5.9bn because the only way to carry out the supplementary budget will be to borrow more.

The supplementary budget, which will now be put to parliament, comes just a day after the treasury unexpectedly borrowed a billion euros in the form of a seven-year eurobond.

Vraničar said the issue was in line with the annual borrowing plan. The funds have not been specifically earmarked but will be used to cover the current shortfall or for the payment of debt principals due this year or in the following years.

This was "a regular operation that the Finance Ministry carries out within the scope of its mandate," Vraničar said.


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