Finance Minister Boštjančič: Slovenia remains stable, but fiscal responsibility is necessary nevertheless

SLOVENIA, May 7 - “The state of public finances in Slovenia is not catastrophic. Far from it. However, we are living in a time of extreme pressures on public finances. A responsible policy must respond to these pressures promptly and seriously,” said the Minister.

He explained that, practically since the COVID-19 epidemic, countries have been facing a continuous succession of crises – from the epidemic, energy crisis and inflation pressures to trade wars, disruptions in the energy and raw material markets and an increase in financing costs.

These pressures were also discussed by EU finance ministers at their recent meeting in Brussels, where they largely focused on energy crisis measures and their implications for Member States’ fiscal policies. International institutions also warn of these risks and pressures.

The Minister said that according to the International Monetary Fund, Slovenia currently ranks third among EU Member States in terms of aid allocated to measures to mitigate the consequences of the energy crisis.

“This means that we responded and protected people and the economy when it was needed the most. Of course, we need fiscal space to be able to continue doing so,” he said.

Responding to budget deviations is a key responsibility of the Ministry of Finance

The Minister explained that the Ministry of Finance’s response to changes in budget outturn is not an extraordinary situation, but rather one of the ministry’s key responsibilities.

“When we detect deviations, we have a duty to act. This is why we called on budget users to prepare appropriate measures. Not because the situation is dire, but because we are acting responsibly,” he said.

At present, the greatest deviations are being recorded in relation to labour costs and healthcare expenditure. The Minister stressed that these are the areas to which the Government has deliberately allocated more funds in recent years – for the people, public services and the stability of the system. He also pointed out that the changes related to statutory obligations are permanent, so reserves must be sought where possible.

The Ministry of Finance has already called on budget users to prepare proposals for measures. Ten ministries and one office responded, which the Minister considers insufficient. Therefore, the ministry will again call on all institutions to take a responsible and self-critical approach. Afterwards, the ministry will propose possible measures.

A call to act responsibly in making decisions with long-term implications

The Minister also called on the deputies of the National Assembly to act responsibly. He said that the consequences of decisions being adopted today would last long after the end of this term.

The Minister drew attention to the proposed intervention act, the development of which the ministry has been following with concern. He said that the proposal poses significant fiscal risks, especially if it is not clearly defined how potential loss of income will be replaced.

“Fiscal responsibility is not a bureaucratic mantra of the Ministry of Finance. Fiscal responsibility means safeguarding the state,” stressed the Minister.

He recalled that in this term, Slovenia maintained the trust of international financial institutions and high credit ratings. The ministry will continue to responsibly manage public finance, promptly warn of potential risks and ensure that Slovenia remains a stable, social and development-oriented country, even in challenging times.

State budget data are publicly available

In conclusion, the Minister called upon citizens to form their own opinion based on the data. He recalled that state budget data are publicly available online at proracun.gov.si, and include data for the terms of previous governments.

“Everyone can form their own opinion what the figures show and what is the result of political or media propaganda,” concluded Boštjančič.