The government must send budget proposals for the next two years to the DZ by October 1 at the latest. The goal is to reduce the public finance deficit below three percent of GDP in 2024 and then further reduce it. The government has already started the preparation procedures.
The government will prepare the changes to the budget for 2024, which was adopted by the DZ in November last year, by autumn. It now records a total of 15.5 billion euros in expenses, and with the approval of the changes, this figure will decrease by 232 million euros to 15.3 billion euros. This is precisely what is written in the decree on the framework for the preparation of state sector budgets for the period 2024-2026, which was adopted by the DZ in April this year.
The reduction in expenses follows the goal of reducing the public finance deficit below the reference value of three percent of GDP in 2024 and further gradual reduction of the deficit in the coming years, the Ministry of Finance announced. In 2025, according to the decree, budget expenditures may amount to slightly less than 15.9 billion euros.
The basic framework for the preparation of budgets for the next two years is represented by the budget memorandum. The government has already familiarized itself with its draft, but it will be finally approved in the autumn at the same time as the other budget documents for the years 2024 and 2025. It contains, among other things, the latest information on economic trends, the content of budget policies and the debt management policy of the state budget.
According to the latest forecasts of the Office of Macroeconomic Analysis and Development of the Republic of Slovenia from March this year, the volume of Slovenia’s GDP should increase by 2.5 percent in 2024, and by 2.6 percent the following year. At the same time, the ministry reminded that the process of preparing budgets is still taking place in uncertain macroeconomic conditions related to the situation in the world, the state of the energy markets and high inflation, all of which complicates the assessment of public finance trends for the following years.