Slovenia recorded a budget surplus last year – for the first time ever – amounting to 13 million euros. Foto: Radio Koper/web
Slovenia recorded a budget surplus last year – for the first time ever – amounting to 13 million euros. Foto: Radio Koper/web


However, despite the figures, Slovenia's public finances are not on the safe side yet, as the budget still needs to be structurally balanced. This should be achieved in two years. The new government will therefore have to manage Slovenia's public finances wisely.

As a result of exceptionally high economic activity, the deficit reduction and last year's surplus happened a year earlier than the government’s initial plans. Apart from the increase in revenue, also influencing the favorable public finance picture was the cutting of the interest rates. However, according to professor Sašo Polanec from Ljubljana's Faculty of Economics, the interest rate policy of the European Central Bank will soon change, which is why it will be important to maintain the surplus.

Bojan Ivanc, an analyst at the Chamber of Commerce and Industry, says Slovenia has problems adopting a structurally balanced budget. The short-term risks are connected to many parliamentary bills still waiting to be discussed before the end of the government's mandate.