Finance Minister Says 2006 Budget Bill Is Good

Ljubljana, 8 December

Finance Minister Andrej Bajuk labelled a 2006 budget bill good, while a 2007 bill still remains to be finalised, as he presented both documents at an extraordinary session of the parliament on Thursday afternoon.

The 2006 budget bill is good and truly development-oriented, while many things are still unknown in the 2007 proposal, mainly because the EU budget has not yet been adopted, Bajuk said.
Once the EU spending plan is adopted, the government plans to change the 2007 bill accordingly. Moreover, the amended 2007 bill would also take into account the planned social and economic reforms, he explained.
According to Bajuk, the budget priorities for 2006 include technological development, scientific programmes, improving the country's competitive ability, state roads, health care, environmental issues and regional development.
The 2007 bill, however, only includes the facts that are already known. "I promise today that as early as 2006 we will draft all the necessary changes for the 2007 budget," Bajuk pledged.
He added that this is the reason for which the government has not yet proposed a rise in the VAT rate, which will be decided before the 2007 budget starts to be implemented, reforms and planned revenues permitting.
"We are talking about two key budgets, as Slovenia is getting ready for the euro changeover," Bajuk stressed.
The budget bills, however, already include the effect of the phasing out of the payroll tax, Bajuk said.
Budget revenues for 2006 are projected at SIT 1,756.4bn (EUR 7.33bn). With expenditures at SIT 1,857.9bn (EUR 7.76bn), the projected deficit is at 1.4% of GDP.
The deficit is to shrink to 1.2% of GDP in 2007 on revenues of SIT 1,861.1bn (EUR 7.77bn) and expenditures of SIT 1,954.2bn (EUR 8.16bn).

Finance Minister Says 2006 Budget Bill Is Good

More articles from this issue:

Archive