The details of the budget proposals for the next two years were presented to the public by Finance Minister Mateja Vraničar Erman. Foto: BoBo
The details of the budget proposals for the next two years were presented to the public by Finance Minister Mateja Vraničar Erman. Foto: BoBo

The government coalition partners were already presented with the budget proposals last week. PM Miro Cerar highlighted healthcare, infrastructure and science among the priorities. Cerar said the highlighted areas would move our society forward, enable economic growth and create more jobs.
The government has to send the amendments to the draft budget for 2017, and the budget proposal for 2018, to parliament until the 1st of October.

The details of the budget proposals for the next two years were presented to the public by Finance Minister Mateja Vraničar Erman.
Next year's expenses are to amount to 9,527 billion euros, while next year's revenues are to stand at 8,846 billion euros, which means a budget deficit of 1,6 percent of GDP. In 2018 budget expenditure is to stand at 9,573 billion euros, with the deficit at 0,9 percent of GDP.

Key priorities for the 2017 and 2018 periods are security, infrastructure, science, information society and healthcare. Around 2,2 billion euros from the 2017 budget, and around 2,3 billion euros from the 2018 budget, will go to those areas.

Higher fiscal aspirations
The government expects higher revenues, mostly coming in from taxes. But the Finance Minister said that did not mean that spending can be increased. The structural harmonization of the budget in line with the fiscal rule has to be achieved in a defined time period. The minister said that if the conditions are favourable, meaning that the country records a higher rate of economic growth, the period for achieving structural harmonization is shorter. She added that additional fiscal aspirations and more cuts regarding expenditure were needed.
More money for healthcare
A bigger change are the additional funds to be earmarked for the healthcare sector. The proposal envisages an additional 35 million euros in 2017, and an additional 49 million euros in 2018. Due to a favourable economic outlook there will be no additional deficits and the healthcare sector will be able to work on shortening its long waiting times, assured minister Mateja Vraničar Erman.
Pensions
In 2017 a normal 1 percent harmonization is forecast for pensions. Potential pension revenues from abroad will be taken into account in determining the amount of yearly bonuses. This year's extraordinary harmonization, which will also have to be confirmed by the government, is supposed to take place in October.
Municipalities are to get around 530 euros per capita in 2017, although negotiations between local authorities and the government have not been concluded yet. However, the economically stronger municipalities will get more funding due to the higher amount of collected income tax.

Concerning the ongoing negotiations with the public sector trade unions, which demand around 330 million euros, the minister revealed that the 2017 budget forecasts a 2,5 percent rise in work expenses, compared to estimated realization. Minister Vraničar Erman hopes that those at the negotiating table will realize that the figures present adequate growth for this year.