Budget for 2015: Restrictive policy for salaries in public sector

Finance Minister Dušan Mramor. Foto: BoBo

The government has prepared the draft of budget documents for 2015 all the Euro countries had to submit to the European Commission; it promises reduction of the budget deficit below 3% GDP. The dynamics of reduction of the deficit is somewhat slower than promised earlier.

The deficit will be reduced slower than assured in spring, with deviation both for this, and the next year. For the next year the deviation of 0.4% of GDP is predicted. The main burden in reducing the expenses will remain on the shoulders of the public employees, and the already valid measures in the social rights area. The government predicts savings at public employees' salaries – besides extension of the present measures, funds for their salaries will be reduced by 3%. Further savings are planned in investments; subventions to companies will be reduced, or transformed into refundable funds.

As far as taxes are concerned, the new government intends to act more moderately than the previous one: personal income tax of 50%, higher taxes on financial services and insurance businesses, and reduction of CO2 emission fees abatements, along with the more efficient collecting of taxes, should bring additional 100 million. Fiscal cash registers are not mentioned in the document, while the Law on Fiscal Rule and strategy of management of state property are included. The parliament should confirm it already in January.

Since the deficit of EUR 1.2 for the budget is planned, the public debt will again increase to more than 83% of GDP.

Zdenka Bakalar, Radio Slovenija
Translated by G. K.