Slovenia swings to January-September budget surplus as inflows rise

Tax inflows increased amid robust economic growth

31. oktober 2018 ob 16.16 • Ljubljana - MMC RTV SLO, Reuters

Slovenia, which narrowly avoided an international bailout for its banks in 2013, expects a general budget surplus of 0.5 percent of GDP this year versus a surplus of 0.1 percent in 2017, the statistics office said earlier in October. Foto: Radio Koper

Slovenia had a central government budget surplus of about 350 million euros during January to September, compared with a deficit of 62.6 million euros in the same period last year, as inflows rose by 9.3 percent to 7.2 billion euros, the finance ministry said on Tuesday.

Spending was up by 2.9 percent, and spending on interest rates for sovereign debt fell as Slovenia bought back some bonds with high interest rates last year and issued new bonds at lower rates.

"Tax income was 6.4 percent higher than in the same period last year," the ministry said, and higher inflows of European Union funds increased the surplus.

Tax inflows increased amid robust economic growth, which the government foresees at 4.4 percent this year compared with 4.9 percent in 2017, boosted by exports, investments and household spending.

Slovenia, which narrowly avoided an international bailout for its banks in 2013, expects a general budget surplus of 0.5 percent of GDP this year versus a surplus of 0.1 percent in 2017, the statistics office said earlier in October. It plans a surplus of 0.2 percent next year.