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Slovenia's 2022 projected budget spending poses structural risk - Fiscal Council

Author Radomir Ralev
Slovenia's 2022 projected budget spending poses structural risk - Fiscal Council Source: Slovenian finance ministry

LJUBLJANA (Slovenia), January 10 (SeeNews) - Expenditures planned under Slovenia's 2022 budget bill pose a structural risk for public finances and violate fiscal rules, the country's Fiscal Council, an independent state body, said.

The preparation of the 2022 budget on the basis of an overestimated outturn in 2021 means that the expenditure planned for 2022 exceeds the level justified by the currently applicable measures and legislation, the Fiscal Council said in a statement on Friday.

Expenditures will increase by around 820 million euro ($928 million) this year compared with 2021, whereas growth of 470 million euro is forecast on the basis of the 2021 budget execution estimate made by the finance ministry in September. This estimate was unrealistic and as such unsuitable for preparing the 2022 budget projections, which poses a risk for the structural deterioration of public finances, the council noted.

According to provisional data, the 2021 budget deficit amounted to 3.098 billion euro. Revenues were 23.1% higher year-on-year in 2021. Expenditure was 13.6% higher compared with 2020, and 8.7% higher excluding the direct effect of COVID-19 measures in the amount of 2.79 billion euro.

The Fiscal Council is accountable to Slovenia's parliament. It has three members and its mission is to assess the compliance of the government's fiscal policy with the fiscal rules and EU regulations.

($ = 0.88377 euro)