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STABILITY PROGRAMMES

Amendments 2019

The Stability Programme for 2019 was prepared while taking into account the Ordinance on the framework for the preparation of the general government budget for the 2020-2022 period, adopted by the National Assembly on 26 April 2019 as per the Fiscal Rule Act. The framework determines the target balance and the largest possible extent of general government expenditure for an individual fiscal year and target balances and the largest possible extent of expenditure from individual public finance budgets for the next three years, i.e. 2020, 2021 and 2022.

 

The 2019 review indicated that the minimum MTO for Slovenia was changed over this medium-term period. Thus Slovenia must achieve a general government structural balance of minus 0.25% of GDP by 2022, and not the current plus 0.25% of GDP. In doing so, we have to provide a set of economic policies that allows us to remain at the level of this medium-term objective and not threaten economic growth.

 

Pursuant to the latest macroeconomic forecast we expect to maintain a general government surplus in the medium term. After a surplus in 2018 of 0.7% of GDP (SORS, 19 April 2019), in 2019 the surplus will rise to 0.9% of GDP and then gradually to 1.2% of GDP in 2022. The surplus is a consequence of the positive economic trends, reduced interest rates and public expenditure frozen until 2018. In 2020 the medium-term objective will again be surpassed (structural balance of -0.17% of GDP) and due to the rules of the SGP will improve up to structural balance in 2022 (structural balance of +0.06% of GDP).