Slovenia announces the highest deficit for this year in almost 20 years

Slovenia predicts the deficit for this year equal to 1.9 percent of gross domestic product (GDP). It would have been for 0.4 percentage points over last year’s value and the most since 1996, when Slovenia was still on the way from several years of deep crisis. The Government will therefore raise some charges.

The Slovenian Treasury this week presented fiscal projections for this year. The projected general government deficit the highest since 1996, when they amounted to 3.3 percent of GDP.

Slovenia is not a member of the euro zone, although the acquisition of the common currency after the accession treaty obliged. After an unsuccessful folk deciding in the past, the State is likely to continue for a long time will not be entered into the euro area, however, with his solid public finances for many years respected all the rules to enter.

‘Our public finances are in 2013 and 2014, slightly weaker than expected, ‘ this week after reporting to the French news agency AFP acknowledged Slovenian Finance minister. This comes in spite of a slightly higher economic growth than forecast. Last year, this amounted to 1.1 per cent as, which is 0.1 percentage point more than forecast this year of 2.5 and 2.4 percent.

Slovenia, which was once renowned as one of the countries with the largest tax in the world, in the last year, blowing off some steam. The proportion of fiscal revenue in GDP decreased from 53 is a little more than 50 percent.

In General, all State of deep crisis at the beginning of the 90. years of the 20th century is reforming its social model, which has always been considered as the largest proxy for socialism in the developed world.

Now to Slovenia again, forcing a bit more grip, but this year, the State should raise taxes on consumption-on alcohol, tobacco and automobiles. Borg says that you’re the strongest Balkan economic country that is going through a crisis significantly better than the Member States of the euro area, such a step could afford.

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