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Fiscal rule is budget rule, which ensures medium-term balance of income and expenditure of state budgets without (long-term) borrowing, in order to achieve sustainability of public finances.

Adoption of fiscal rule in the Constitution: The National Assembly of the Republic of Slovenia (hereinafter: National Assembly) has on 31. 05. 2013 adopted a constitutional law amending Article 148 of the Constitution of the Republic of Slovenia (Official Gazette 47/13), which reads as follows: All revenue and expenditure for financing of public spending must be included in the budgets of the state. This change has defined the so-called fiscal rule as constitutional principle. Later, on 10 July 2015, the National Assembly passed a law whereby the state specifically defines how the commitment at the highest legal act of the country is put into practice.

Law on Fiscal Rule (Official Gazette of RS, no. 55/15) defines the method and timing of the implementation of the principle of medium-term balance of revenue and expenditure of budgets without borrowing and the criteria for determining the exceptional circumstances and the manner upon their occurrence. Implementation of the Fiscal Rule Act is defined in Public Finance Act.

The Fiscal Rule Act, which defines in detail the principle of the medium-term fiscal balance, calls for the gradual reduction of the structural government deficit. Reduction of the structural deficit must be carried out in accordance with the dynamics envisaged by the Pact for Stability and Growth Pact (SGP).


Fiscal Rule Act