Slovenia raises 2024 budget gap projection over flood recovery measures

The main priority for the next two years is the financing of measures to eliminate the consequences of the floods as according to the first estimates, several billion euros will be needed to help the citizens and the economy, the government said in a statement after a regular meeting on Thursday.

The government expects the budget deficit for 2024 to reach 2.2 billion euro ($2.3 billion), based on revenues of 14 billion euro and expenditure of 16.2 billion euro, whereas in 2025 the budget deficit is estimated at 1.26 billion euro, or 1.8% of GDP, it said.

The government has spent about 600 million euro on flood-related issues so far this year and the amount needed for 2024 is estimated at 1.1 billion euro, finance minister Klemen Bostjancic said in a video file posted on the government website.

Slovenia closed 2022 with a consolidated budget deficit of 1.4 billion euro, down from a 3.1 billion euro deficit in the previous year. The government recorded a 735 million euro budget deficit in the first eight months of 2023.

The government has to send the draft budgets for 2024 and 2025 for parliamentary approval by October 1.

($ = 0.94251 euro)