Budget Deficit of Slovenia Is Almost 50% Down

By the end of first quarter 2017, the budget deficit of Slovenia has decreased by almost 50% per annum from 363 million euros (3.9% of GDP) to 185 million euros (1.9% of GDP). The inflation rate in the first half of the year made 1.7%. State revenues in the mid-term increased by 7.4% to almost 4.29 billion euros. This is the highest indicator of revenue growth since 2008, according to the Statistics Service.

Income from social contributions has increased most significantly: by 10.3% as compared to the first quarter of 2016. In the sector of taxation, income tax, capital tax and taxes on products grew most. The income tax, as compared to the first quarter of last year, increased by 7.4% and the capital tax—by 4.3%.

After five quarters of declining indicators, the total government expenditures in the first quarter of 2017 increased in mid-year terms. As compared to the same period last year, they grew up to 4.47 billion euros (by 2.7%), which is still lower than the growth rates of state revenues.

Expenditures on labour remuneration and social payments increased. The expenditures on labour remuneration, as compared to the same period last year, rose by 3.2%, and on social payments—by 2.8%.

The second important statistical indicator is inflation. In June 2017, inflation in Slovenia was 0.9% at the average annual level, while consumer prices in the monthly average remained unchanged. In the first half of 2017, prices increased by 1.7% and in the same period last year—by 1.3%.

In June, the rise in prices for fruit and footwear affected inflation the most (0.2%). Similarly, average annual inflation slowed down due to the lower prices for clothing and used cars.

In the first half of 2017, prices in Slovenia grew most significantly in the category of culture and leisure, as well as clothing and footwear. At the same time, prices for goods and services fell in such categories as communication, healthcare, cabinet furniture, household appliances, and current housekeeping.

In June 2017, the average annual price growth, taking into account the adjusted consumer price index used to compare prices in the EU, made 0.9%, and the same monthly average index reached 1%.

Source: rtvslo.si