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Ljubljana – The Slovenian government has approved the medium-term fiscal-structural plan for the period 2025-2028, which Slovenia, in line with the new EU fiscal rules, must send to Brussels for the first time this year like all other members. The measures outlined in it will ensure that the public finance deficit stays below three percent of GDP in the medium term and that the debt decreases toward the reference threshold of 60 percent of GDP.
Member states will prepare medium-term fiscal-structural plans every four years and, as stated in the plan for the period 2025-2028, in the next four years, the allowed average growth of adjusted expenditures will be 4.5 percent per year.
“This way, a predictable and stable fiscal path is determined, which will ensure an appropriate fiscal effort in the medium term and is consistent with the previous guidance of the European Commission for Slovenia,” explained the Ministry of Finance after the government session.
According to these plans, the public finance deficit is expected to decrease from 2.9 percent of GDP in 2024 to 1.2 percent of GDP in 2028. In this period, the country’s debt is expected to slip to 61.2 percent of GDP. The reduction in the deficit will be enabled by structural changes, increased efficiency of public expenditures, the expiration of energy price crisis measures, and discretionary measures on the revenue side, as stated in the document.
Alongside the planned fiscal policy, the plan also includes key reforms and investments. These include pension and health care reform, as well as tax changes and an overhaul of the public sector pay system. (10 October)