The Government’s position regarding the Fiscal Council’s assessment of the revised budget’s compliance with the fiscal rules

The Government adopted a position regarding the assessment of the Fiscal Council of the Republic of Slovenia of the compliance of this year’s draft revised budget and the proposed amendments to the Ordinance on the framework for the preparation of the general government budget for the 2022–2024 period with fiscal rules.

In its position, the Government noted that it was unable to balance this year’s budget by means of retention and redistribution and has thus prepared a revised budget. This was further affected by the anti-coronavirus and other measures that the previous government and the National Assembly adopted following the approval of the amendments to the 2022 budget. It is a question of more than EUR 1 billion of additional obligations and reduced resources, while approximately EUR 330 million was planned for contingencies in the budget. Furthermore, new measures linked with the mitigation of the energy crisis and inflation are necessary. All of the above requires a greater expenditure and higher reserves for the Government’s possible measures this year.

The Government allows for the possibility that the resources or expenditure arising from the revised budget will not be utilised in its entirety. As it is necessary to observe all obligations arising from applicable regulations and all the already assumed obligations burdening the current budget when planning budget or revised budget expenditure as per the fiscal rules, it is inadmissible to fail to plan for a sufficient amount of expenses on the basis of assumptions about the possible non-use of funds.

Exceptional circumstances and the general escape clause that allow the derogation from the fiscal rules still apply in 2022.

Source: Ministry of Finance