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Slovenia's 2024 budget deficit the lowest in the last five years

Slovenia is successfully dealing with the challenges of managing government finances. According to preliminary data, the budget deficit in 2024 was only 1.2% of the GDP, the lowest in the last five years, which attests to financial stability and the responsible management of public funds.

The budget adopted for 2024 estimated revenue of EUR 14 billion. The actual outturn exceeded this estimate, totalling EUR 14.6 billion. This is mostly due to the record employment rate, higher salaries, good performance of businesses and additional revenue deriving from the Reconstruction, Development and Provision of Financial Resources Act adopted at the end of 2023. This additional revenue includes a temporary increase in the corporate income tax rate and the net and distributable profit of the Slovenian Sovereign Holding in the total amount of EUR 280 million, which will be allocated to the recovery of the areas affected by the floods in August 2023.

On the expenditure side, EUR 16.2 billion was planned but only EUR 15.4 billion was spent, which constitutes a saving of EUR 0.8 billion. Because of the uncertainty in the implementation of flood recovery, not all funds earmarked for this purpose were spent. Nevertheless, nearly EUR 0.5 billion was paid to municipalities, companies and individuals to aid them in recovery. EUR 530 million was also paid into the Reconstruction Fund in 2024 for the restoration of flooded areas.

Additional funds were provided for the indexation of pensions and other transfers, such as child benefits, scholarships, social assistance, and transport and meal subsidies. Following the record investment year of 2023, the level of investment was also high in 2024, totalling EUR 1.5 billion invested in improving the railway, road, sports, healthcare, scientific and defence infrastructures.

The 2024 budget thus reflects the success of Slovenia's economic recovery and the prudence of its financial policy.