10th Regular Session of the Government of the Republic of Slovenia
SLOVENIA, September 10 - The Government determined the revised state budget proposal for 2026 with the corresponding budget documents. In preparing the revised budget, it took into account the time limit for drawing down funds from the Recovery and Resilience Facility, changes to labour legislation and additional obligations regarding defence expenditure, in line with the state's commitments. The revised budget proposal includes planned revenues of EUR 16.5 billion, which is 6.3% higher than in the budget adopted last year. Planned expenditure, meanwhile, amounts to EUR 18.8 billion, representing a 6.2% increase on previous figures. The planned government deficit is EUR 2.2 billion or 2.9% of gross domestic product (GDP), which is in line with the fiscal rules and the targets set out in the originally adopted budget for 2026. The Government is thereby demonstrating its commitment to the efficient and prudent management of public finances. The main focus of the adjustments is to ensure full commitment appropriations for measures under the Recovery and Resilience Plan, for which funding can only be drawn down until the end of this year, while the budgets for 2026 and 2027, adopted last year, had envisaged that part of these funds would be drawn down in 2027. Budget allocation for the Recovery and Resilience Plan is therefore being increased by EUR 320 million compared with the adopted budget. The 2026 budget adopted last year also underestimated the funds earmarked for defence expenditure. Under the revised budget proposal, these funds would be increased by EUR 296 million, bringing the total to 2.03% of GDP. This honours the commitment made at the NATO summit. Additional budget funds are also being allocated to cover obligations arising from the winter bonus, the increase in the minimum wage and the adjustment of salaries for public employees working abroad. In these cases, the additional expenditure stems from statutory obligations adopted after the 2026 budget came into force.
The Government took note of the Autumn Forecast of Economic Trends 2026 prepared by the Institute of Macroeconomic Analysis and Development (IMAD). Economic growth is expected to reach 3.8% this year, which is significantly higher than last year (1.5%) and well above IMAD's 2% spring forecast. Broad-based economic growth demonstrates the resilience and adaptability of the economy in the face of increased economic and geopolitical uncertainty in the international environment. Some factors, however, particularly the surge in investment ahead of the completion of major investment projects, are one-off in nature. Economic growth is expected to moderate over the next two years as the effects of one-off factors gradually fade (to 2.5% in 2027 and 2.3% in 2028). Inflation is expected to average 3.1% this year, exceeding the spring forecast of 2.6%, mainly due to higher energy and service prices. Assuming no new external shocks, inflation is expected to gradually moderate over the next two years. The Autumn Forecast is subject to significant, predominantly downside risks, particularly from the international environment, related mainly to the further course of the war in the Middle East and conditions in global energy markets. Some risks also stem from the domestic economic environment, particularly a more pronounced labour shortage, which could further intensify pressures on labour costs and companies' competitiveness. Higher economic growth is also possible if geopolitical conditions ease and development measures are implemented successfully.
The Government finalised the text of the proposed Act on Temporary Measures for a More Efficient Implementation of the Long-Term Care System and submitted it to the National Assembly for consideration under the urgent procedure. The intervention act introduces a series of temporary measures to ensure more efficient implementation of the long-term care (LTC) system, reduce administrative burdens and provide greater flexibility in the provision of services to users. The measures respond to lessons learnt during the initial phase of the system's implementation and will, as a rule, remain in force until 31 December 2027. The focus remains on the service user: their actual needs, continuity of care, legal certainty, access to services and social security. The proposed amendments do not affect the fundamental scope of recognised rights to long-term care. These are primarily transitional and emergency measures designed to enable the system to be established and stabilised more effectively by the end of 2027. The proposal also ensures the continuation of e-care for users who are already receiving it under the current system, until the conditions are in place for the transition to the arrangements set out in the Long-term Care Act. The proposed intervention measures thus represent an adaptation of the system to practical experience: fewer unnecessary procedures, greater responsiveness, more efficient use of human and institutional resources and, above all, greater security and continuity for users of long-term care.
Legal Disclaimer:
EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
