Main Aggregates of the General Government, Slovenia, 1th quarter 2020

General government in the first quarter of 2020 with high deficit

General government generated a deficit of EUR 739 million (6.6% of GDP) in the first quarter of this year. Consolidated general government gross debt at the end of the first quarter of 2020 amounted to EUR 33,413 million or 69.6% of GDP.

  • 6/30/2020
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General government deficit at EUR 739 million (6.6% of GDP)

General government generated a deficit of EUR 739 million or 6.6% of GDP in the first quarter of 2020. This was also influenced by the halt of economic activities as a result of the declared coronavirus epidemic in the Republic of Slovenia in the second half of March. Compared to the same quarter of 2019, the deficit increased by EUR 647 million. In the first quarter of this year the growth of expenditures was significantly higher compared to the same period of last year. The growth was 9.5%, at the same time the revenues of general government decreased by 3.4%.

The last time the general government generated this amount of deficit was in the fourth quarter of 2014 (EUR 867 million or 9.1% of GDP).

Lower tax revenues for the state budget

In the first quarter of this year, the total revenues of general government amounted to EUR 4,774 million and were lower by 3.4% (EUR 168 million) compared to the first quarter of last year. Tax revenues had the important impact in this decrease; they were lower by 10.5% (EUR 253 million). At the same time the revenues from social contributions grew by 6.5% (EUR 121 million) because of continued favourable conditions on the labour market.

Among the tax revenues, the current taxes on income and wealth decreased by 16%, and taxes on production and imports by 7%.

The first effects of the epidemic had a high impact on expenditure on subsidies

The first quarter of this year was marked by high expenditure of general government, also as a result of the state measures for reducing the negative consequences of the economic crisis on the population and on business. Compared to the same quarter of last year, the total expenditure amounted to EUR 5,513 million and grew by 9.5% (EUR 479 million), which was the most after the fourth quarter of 2013.

In the first quarter of 2020, general government continued the growth of expenditures from compensation of employees (6.3%), social benefits (7.9%), intermediate consumption (12.9%) and gross fixed capital formation (2.1%).

Additionally the state measures for reducing the  negative consequences of epidemic on the labour market and social contributions increased general government expenditure on subsidies on production by EUR 163 million.

Because of the continuous favourable trend of interest rates on financial markets, the general government decreased interest expenditures by 7.6% in the first quarter of this year.


Consolidated general government gross debt at the end of the first quarter of 2020 at 69.6% of GDP

Consolidated general government gross debt amounted to EUR 33,413 million or 69.6% of GDP at the end of the first quarter of 2020. Compared to the end of the fourth quarter of 2019, the consolidated general government gross debt increased by 5.3% or EUR 1,669 million, of which EUR 1,200 million due to reducing the negative consequences of the epidemic. Debt in short- and long-term securities other than shares, excluding financial derivates, increased the most.

Government debt at the central level at the end of first quarter of 2020 was estimated at EUR 32,771 million or 68.3% of GDP and at the local level at EUR 865 million or 1.8% of GDP. Social security fund debt amounted to EUR 0.3 million.

Main aggregates of quarterly non-financial accounts for general government, Slovenia
20192020
I-IIIIV-VIVII-IXX-XIII-III
mio. EUR
S.13 General government
  Total revenue4,9435,3045,3995,5824,774
  Total expenditure5,0345,2135,2845,4365,513
  of which: interest expenditure202203208208187
Net lending (+), net borrowing (-)-9291115146-739
Consolidated gross debt1)31,56431,80332,39031,74433,413
  S.1311 Central government30,97931,22731,81731,12332,771
  S.1313 Local government803794786857865
  S.1314 Social security funds10000
  Intra subsector consolidation (-)-219-218-214-236-223
1) Some totals and calculations do not add up due to rounding.
Source: SURS
Main aggregates of quarterly non-financial accounts for general government, Slovenia
20192020
I-IIIIV-VIVII-IXX-XIII-III
% BDP
S.13 General government
  Total revenue44.343.843.645.242.8
  Total expenditure45.143.042.644.149.5
  of which: interest expenditure1.81.71.71.71.7
Net lending (+), net borrowing (-)1)-0.80.80.91.2-6.6
Consolidated gross debt1)68.167.768.166.169.6
  S.1311 Central government66.866.566.964.868.3
  S.1313 Local government1.71.71.71.81.8
  S.1314 Social security funds0.00.00.00.00.0
  Intra subsector consolidation (-)-0.5-0.5-0.5-0.5-0.5
1) Some totals and calculations do not add up due to rounding.
Source: SURS
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