The Slovenia Times

Govt Proposing Start of Gradual Introduction of Fiscal Rule in 2016


The bill, which is planned for adoption in 2015, stipulates the gradual elimination of the deficit and balanced public finances, which would also reduce public debt, but not under stricter criteria than demanded by EU rules, head of the parliamentary Committee for Finance and Monetary Policy Urška Ban said.

The MP of the ruling Party of Miro Cerar (SMC) explained the proposal envisages an annual reduction of structural deficit by 0.5 percentage points.

"The main point is that there will be a gradual adjustment of public finances, but not at the expense of employment and economic growth," she said.

The coalition agreed Sunday that the government will start the debate on a draft version of the fiscal rule implementation bill.

The bill is needed to implement the balanced-budget rule which was enshrined in the Constitution in May 2013 as part of EU fiscal responsibility rules.

Under the original timetable, the law should have been passed by November 2013 and the opposition Democrats (SDS) have twice threatened to launch impeachment proceedings against the government for failing to present the implementation bill.

This was the first presentation of the draft to coalition MPs. Since a two-thirds majority is needed for its adoption, it will be presented to representatives of all deputy groups in parliament on Wednesday, while the government is scheduled to debate it on Thursday.

Ban announced the government would file it for parliamentary procedure in 2015, but could not yet say whether this would come before the proposal for the 2015 supplementary budget announced for January.

It is definitely to be in place for budget planning for 2016, Ban announced, assessing that four to five years could be necessary to completely eliminate the structural deficit.


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