November 17 (SeeNews) - Slovenia's parliament approved the state budget for the next two years, targeting a budget deficit equal to 1.6% of GDP next year and 0.7% of GDP in 2018, the finance ministry said on Thursday.
Revenue for 2017 is forecast at around 8.8 billion euro ($9.4 million), up 5% compared to the estimated figure for 2016, while expenditures are expected to grow 3.8% to 9.5 billion euro, the finance ministry said in a statement.
The budget deficit is planned at 681 million euro next year.
In 2018, the highest expenses in accordance with the mid-term frame are set at 9.6 billion euro, which is 0.5% more than estimated in the 2017 budget, while income is planned at 9.3 billion euro, or 4.8% more than projected for next year. The budget deficit for 2018 is seen at 305 million euro.
"The government will continue with the gradual fiscal consolidation and work on the successful management of government debt in 2017 and 2018," the ministry also said.
According to Slovenia's parliament's website, lawmakers voted 47-0 to adopt the spending plan.
Local media reported that during yesterday's session the opposition left the parliament before the vote claiming that the budgetary documents are incomplete. The opposition warned that the forecast deficit is likely to be higher than planned because the government has still not concluded talks with public sector unions on wage hikes.
On Wednesday, the European Commission warned that it has included Slovenia on a list of member states whose draft budgetary plan is at risk of non-compliance with the Union's requirements.
In 2015 Slovenia's budget deficit fell to 2.9% from 4.9% in the previous year, according to central bank data.
($=0.9323 euro)