Constitution Changes Maintain Budget Surplus in Slovenia

March 9, 2012 Taxation in Slovenia

Slovenia to maintain budget surplusLJUBLJANA – Slovenia is taking action to reduce its public debts by ensuring that government maintains a balanced budget and avoids deficits in the future.

Following a meeting of the Cabinet in Ljubljana on March 8th the Finance Minister of Slovenia Janez Šušterši revealed for the first time that his government is currently considering a proposal to introduce a new legislation to tighten public spending and ensure that the country maintains a budget surplus.

The new constitutional rule will mandate that the national budget be maintained at a positive level at all times, providing that there is no extreme circumstances such as military conflicts or natural disasters, or the government will be required to implement measures to balance operating profits and losses in the national budget.

If approved, the rule is slated to come into effect in the year 2015.

Slovenia’s public debt currently stands at 47.4 percent of the value of the country’s gross domestic product. The new proposal comes as an integral part of the plan of the government of Slovenia to reduce the national debt levels, allowing the Slovenia to comply with the conditions set out in the new European Union treaty on fiscal responsibility signed by Slovenia and 24 other countries on March 2nd.

It is hoped that the newly proposed rule will also allay the concerns of international investors regarding the country’s growing debts.

Alongside the deficit control, the government is implementing further measures to help improve the country’s fiscal standing. At his announcement, the Finance Minister also said that the government has now adopted a new legislative amendment which will give the Cabinet greater powers in controlling the Capital Assets Management Agency, a national state body responsible for the management of Slovenia capital investments.

Photo by globalclaire

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