Govt highlights investment growth in budget documents

Ljubljana – Finance Minister Andrej Šircelj highlighted a substantial increase in investments, in particular in healthcare, as he presented the budget documents for the coming two years after the government session on Wednesday.

The government today adopted a revised budget proposal for 2022, a budget proposal for 2023, a budget implementation bill and other related documents. All need to be submitted to parliament for confirmation by Friday.

The budget documents were drawn up in extraordinary circumstances of the Covid-19 pandemic, which means they do not adhere to the strict fiscal rules, said Šircelj.

The proposals reflect the forecast of a fast economic rebound, as a result of which the general government deficit is to be reduced fast, from 7.5% of GDP expected this year to 5.4% of GDP in 2022 and 3.3% of GDP in 2023.

The Institute of Macroeconomic Analysis and Development, the government’s economic forecaster, expects the Slovenian economy to grow at a rate of 6.1% this year before slowing to 4.7% in 2022 and 3.3% in 2023.

The public debt is to decrease from last year’s 79.8% of GDP to 78.5% of GDP this year and 70.5% of GDP in 2022, with an additional decrease in 2023, which means much lower costs of debt servicing.

Šircelj said investment in healthcare was to increase four-fold, from EUR 50 million this year to EUR 200 million in each of the next two years. “These investments will have a positive effect on the economic growth and quality of health services.”

Just today, the National Assembly passed a law securing EUR 2 billion in investment in healthcare over the next ten years.

According to the minister, much more money will also be allocated for care homes, as well as investment to adapt to climate change, science and research, sustainable mobility and water management.

The budget implementation bill provides for the funding of municipalities to increase to EUR 645 per capita next year and to EUR 647 a year later. The allowance for pensioners in 2022 is set at between 140 and 450 euro, depending on the pension.

The government has already proposed raising the spending ceiling by EUR 701.5 million to EUR 13.30 billion in 2022, before it is to drop to EUR 13.05 billion in 2023.

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