The state budget had a deficit of -EUR 551 million in the first five months of the year, compared to a surplus in the same period last year. The balance thus deteriorated by EUR 765 million in one year.
Revenues were down year-on-year, while expenditure growth more than doubled compared to the same period last year.
The dynamics of all key revenue categories are slowing down. In order to meet the projections of the current budget, their growth should pick up significantly over the rest of the year.
The stronger expenditure growth is broad-based, mainly driven by higher labour costs with the introduction of the new wage system. The main underperformer of the current budget projections is investment spending, which is lower year-on-year, mainly due to lower EU funding.
The post-flood reconstruction is behind schedule, with only about one tenth of the planned funds disbursed for measures in the first five months of this year. At the end of May, the Fund for the Reconstruction of Slovenia had almost EUR 700 million at its disposal.