Main Aggregates of the General Government (October EDP reporting), Slovenia, 2013–2016

General government deficit in 2016 at 1.9% of GDP, 0.1 p.p. higher than at the first estimate in April 2017

After the regular annual revision general government deficit in 2016 amounted to 1.9% of GDP and government debt to 78.5% of GDP. The revision of general government deficit and debt was mainly driven by the inclusion of the data sources that were  not yet available within the April data release.

  • 9/27/2017
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General government deficit in 2016 estimated at 1.9% of GDP or 0.1 of a percentage point more than according to the first estimate in April 2017

According to the second estimate, general government deficit in 2016 amounted to EUR 754 million or 1.9% of GDP, which is EUR 21 million or 0.1 of a percentage point higher than at the April EDP release. The main reasons for these revisions are the data sources that were not yet available within the April EDP release. The final impact for the 2013–2016 period will be known in October, when the EDP procedure will be finalised.

General government deficit, mainly generated at the central government level, has been gradually decreasing since 2014. In 2016 it decreased by EUR 368 million or 33% compared to 2015. This decrease was mainly influenced by lower government expenditure, which, compared to 2015, decreased by EUR 376 million or 2% and amounted to EUR 18.2 billion in 2016. Government revenues remained at the level of 2015 and amounted to EUR 17.4 billion.

In 2016 government mainly decreased expenditure on gross investment and capital transfers. Investments decreased by EUR 531 million or 29%, while capital transfers decreased by EUR 274 million or 58%. Social benefits together with compensation of employees accounted for more than half of the total government expenditure in 2016. While social benefits in 2016 remained at the level of 2015, the expenditure on compensation of employees increased by EUR 286 million or 7%.

On the revenue side, total revenues from taxes and social contributions increased by EUR 604 million (4%) compared to 2015. The largest increase was recorded within current taxes on income and wealth (7%). On the other hand, revenues from the EU decreased in 2016. This decrease had an impact on lower capital transfer revenues, which decreased by EUR 579 million (79%).

From 2015 on general government has been generating primary surplus (calculated as total deficit less interest expenditure), which in 2016 amounted to EUR 465 million or 1.1% of GDP.

Local government level generated surplus, social security funds generated deficit

Local government level has been generating surplus since 2015. In 2016 it amounted to EUR 73 million (0.2% of GDP), which is EUR 43 million less than in 2015. The highest share of the surplus was generated at the level of municipalities; however, surplus was also generated at the level of public funds, public agencies and other units. After three years of surplus, social security funds generated deficit in 2016 in the amount of EUR 67 million (0.2% of GDP). The deficit was mainly generated at the level of public corporations and also the Health Fund.

Revision of data on compensation for the erased decreased the deficit in 2013

According to the Act Regulating the Compensation for Damage Sustained as a Result of Erasure from the Register of Permanent Residents (OJ RS, No 99/13), the deadline to apply for the compensation ended on 18 June 2017. As a consequence new information by the Ministry of the Interior decreased the expenditure for erased persons, which according to the ESA 2010 methodology qualifies as one-off expenditure (capital transfers of the central government). Due to the mentioned revision, the deficit in 2013 decreased by EUR 104 million.

General government debt after revision amounted to 78.5% of GDP

According to the second estimate, general government consolidated gross debt in 2016 increased by EUR 53 million to EUR 31,730 million, which was mainly due to the inclusion of the general government units in liquidation. Despite this increase, general government debt in percentage of the GDP decreased by 1.1 of a percentage point and amounted to 78.5% of GDP (79.7% according to the April estimate). This was mainly due to the increase in the GDP in nominal terms.

Table 1: Main aggregates and categories of the general government, Slovenia
2013201420152016
mio. EUR
Revenue16,24916,66417,41917,410
Less: Expenditure21,56818,65618,54118,165
Surplus (+) / Deficit (-)1)-5,319-1,992-1,122-754
  Central government-5,333-2,021-1,282-760
  Local government-51-4411673
  Social security funds657344-67
Less: interest expenditure9281,2181,2511,219
Primary deficit/surplus-4,392-773129465
Debt at the end of the year2) 25,50530,19932,06331,730
  Central government24,95129,59231,47431,175
  Local government734788786758
  Social security funds2211
  Intra subsector consolidation (-)-181-182-198-204
Gross domestic product36,23937,61538,83740,418
1) Some totals and calculations do not add up due to rounding.
Source: SURS
Table 2: Main aggregates and categories of the general government, Slovenia
2012201320142015
% of GDP
Revenue44.844.344.943.1
Less: Expenditure59.549.647.744.9
Surplus (+) / Deficit (-)1)-14.7-5.3-2.9-1.9
  Central government-14.7-5.4-3.3-1.9
  Local government-0.1-0.10.30.2
  Social security funds0.20.20.1-0.2
Less: interest expenditure2.63.23.23.0
Primary deficit/surplus-12.1-2.10.31.1
Debt at the end of the year2) 70.480.382.678.5
  Central government68.978.781.077.1
  Local government2.02.12.01.9
  Social security funds0.00.00.00.0
  Intra subsector consolidation (-)-0.5-0.5-0.5-0.5
1) Some totals and calculations do not add up due to rounding.
Source: SURS
Detailed data and time series are available on the SI-STAT data portal.
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