EUR 5.67 billion in borrowing planned for next year

Ljubljana, 17 December – The budget financing programme for 2021, adopted by the government on Wednesday, shows that EUR 5.67 billion in borrowing is needed next year. In that case, the central government budget debt would increase to EUR 36.62 billion or around 75% of the country’s gross domestic product (GDP).

As the passed budget for 2021 envisages a deficit of EUR 3.26 billion, and EUR 3.73 billion is needed to pay off principals due in 2021, while the scheduled borrowing was reduced by some EUR 255 million, this means that borrowing for next year amounts to EUR 6.73 billion.

To be deducted from this sum is EUR 1.06 billion from pre-financing implemented with this year’s borrowing and from the proceeds from the sale of state assets. The final amount of the required borrowing for 2021 for the implementation of the state budget thus amounts to EUR 5.67 billion.

Under this assumption, the estimated central government budget debt is to reach EUR 36.62 billion at the end of 2021, which would be 75% of Slovenia’s GDP, the Finance Ministry said after the government session.

Borrowing in the form of issuing of treasury bonds is planned as the primary instrument of financing of the state budget, while other instruments will also be possible.