The main topics at the meeting, which was also attended by Finance Minister Dušan Mramor, were the sugary drinks tax bill, and the changes to the decree on higher greenhouse gas emission taxes.
Mramor quickly realized that the budget needs further amendments
The 2015 budget, which was adopted by parliament at the end of last year, will have to be amended. Finance Minister Dušan Mramor quickly realized that after taking office. The budget currently envisages a deficit of 2,4% of GDP. However if the government does not act now, it could rise to 5% of GDP.
Mramor considers a 2015 budget deficit of 1.2 billion euros, or 2,7% of GDP, as acceptable. To achieve that figure, the state's revenue will have to be increased by more than 100 million euros. At the same time, expenditure will have to be cut by more than 600 million euros.
In order to increase revenue Mramor suggested raising the tax on financial services and insurances to fill in the loss from the expiring tax on the total assets of banks, which expires at the end of 2014. The National Assembly has already confirmed both taxes. The National Assembly has also preserved the highest 50% personal income tax bracket for 2015, which was also in place for years 2013 and 2014.
More money is expected to remain in the budget by lowering the tax relief for burdening the environment with higher greenhouse gas emissions, and by lowering the contribution reliefs for electricity for energy efficient companies. Businesses strongly oppose these measures. It still isn't certain whether the coalition has decided to listen to the demands of the business community.
Sugary drinks take away 4,7 million
A decision was reportedly brought last night not to seek additional revenue with the sugary drinks tax. Businesses, especially from the food industry, strongly oppose the tax. At the same time the health sector is in favour of the tax, as it would contribute to a lesser consumption of sugar, especially among the young. With the tax the government hoped to increase its revenue by 4,7 million euros a year.
The PM's cabinet informed after the meeting that the coalition is coordinated with regards to the amendments to the 2015 budget. The government plans to discuss the budget and finally approve it on Thursday. The head of the deputy group of the largest coalition party, Miro Cerar's SMC, Simona Kustec Lipicer, said the meeting was a "purely classic coordination meeting between the parliament and government".