The Surplus of Slovenia’s Budget Amounted to 6.7 Million Euros in September
The state budget of Slovenia shows a surplus for the second consecutive month. If in August, the figure was 74.4 million euros, in September it dropped to a modest figure of 6.7 million. The total budget deficit for the first 9 months of 2016 is estimated at 523.4 million euros, which, according to the representatives of the Ministry of Finance, is consistent with the expected forecast.
The budget deficit for 2016 was established by the Parliament in the amount of 839.3 million euros (2.1% of gross GDP). This is the lowest projected index for the post-crisis period. Furthermore, in July the Ministry of Finance reported that the real deficit of the Slovenia’s budget for 2016 could be even lower—in the range of 714 million euros.
The revenues of Slovenia’s treasury in September reached 639.7 million euros, 30.9 million euros more than the same period last year.
Less Funds from the EU Budget
During the first 9 months of 2016, Slovenia received 300.8 million euros from the EU budget. They were allocated as the last tranche for the financial period of 2007–2013. During the same period last year, the figure was 621.2 million.
However, within the framework of the European Cohesion Policy, Slovenia cannot yet use the funds allocated by the EU for the financial period of 2014–2020. The fact is that the Slovenian system for implementing the European Cohesion Policy has not been yet accredited for the indicated period. The accreditation should pass before the end of this year. In the event of its successful completion, the funds from the EU budget will become available.
Taxes and Levies in Slovenia: Revenue Growth
The tax revenue in September totalled 589.2 million euros, which is 133.3 million more than in September 2015. The VAT revenue reached 254.5 million euros (222.2 million in September 2015).
The Ministry notes that the reason for the growth of tax revenues is in the excise taxes, which last year were accounted only from 1 October, so that in September there was no income from this area. This year, after the settlement of payable accounts, the excise taxes have been taken into account starting from 30 September and amounted to 147 million euros, which is 70.8 million euros more than the year before.
During the first 9 months of this year, the total revenue from taxes and levies amounted to 5.31 billion euros (5.09 billion euros in 2015). The VAT revenue amounted to 2.4 billion euros (2.35 billion euros in 2015). The excise taxes enriched the state budget with 1.16 billion euros for the first 9 months vs. 1.06 billion euros in 2015.
This year the Slovenia’s budget has received 731.2 million euros from the income tax payment, which is 60 million euros more than last year. The tax on corporate income boosted the coffers by 467.3 million euros (about 448.8 million euros in 2015).
The total budget expenditure for 9 months (6.63 billion euros) reduced by 404 million euros as compared to the previous year.
The Ministry of Finance notes that, in general, there is a decrease in spending on goods and services, interest payments in foreign currency, and reserve payments of subventions.
The area of salaries and other subvention payments to employed people recorded a 1.8% growth according to the average index of the approved budget implementation.