Revenue is projected at EUR 8.56bn, 64 million euros less than in the currently valid budget documents, largely due to the non-implementation of a real estate tax, whose proceeds were only partially offset with other revenue sources.

Expenditure was revised upwards by over EUR 467m, to EUR 9.95bn, as a result of higher interest payments stemming from the 2013 bank bailout and higher than expected pension transfers.

Additionally, investment spending is budgeted at a high level. "We did not want to kill economic growth with excessive belt-tightening," the minister said.

Expenditure on asset purchases will be 41% above their 2014 level and investment transfers will rise by a fifth. Overall investment spending will rise 30% compared to the year before.

The revised budget depends heavily on the drawing of EU funds from the previous financial period (2007-2013), but that is also the main source of the higher deficit.

"The bulk of the deficit above the one-billion mark is due to the fact that we will cover for the EU funds from the previous financial period that will be refunded in a few years," Mramor said.

The budgeting of EU funds means that the budget deficit will be at 3.6% of GDP under Slovenian methodology, while the 2.89% figure is in conformity with the EU-wide methodology ESA.

Mramor said the government did not need fresh borrowing to finance current budget expenditure for this year. Nevertheless, if interest rates remain at historically low levels it will consider borrowing to pre-finance spending over a longer period.

Asked about the minister's sentiment at today's cabinet session, Mramor said the cabinet meeting was quieter than ever. "It appears we resolved all issues in a manner acceptable to all ministers."

The coalition partners acknowledged prior to the cabinet session that nobody was entirely pleased with the budget, but that it was the best compromise possible under the current conditions.

"Judging by the faces I saw, none of the ministers are happy...But when you enter the government you know you just cannot disburse funds the way they used to," said Matjaž Han, deputy group leader for the Social Democrats (SD).

Franc Jurša, the leader of the Pensioners' Party (DeSUS) faction, likewise said "nobody can be satisfied", but he was quick to point out that his party would push for changes in the coming months.

The coalition agreement says pensions will be indexed once GDP growth reaches 2.5%. The issue was broached today and would be on the table when official growth figures for 2015 are due at the end of February, he said.