LJUBLJANA, Sept. 25 (Xinhua) — Slovenia managed to cut the general government deficit in 2023 to 1.6 billion euros (1.78 billion U.S. dollars) or 2.6 percent of gross domestic product (GDP), down from a deficit of 3 percent of GDP in 2022, the country’s Statistical Office said on Wednesday.
The deficit fell due to a 10.6 percent increase in government income amid high employment and a solid economic growth of 2.1 percent in 2023.
However, the government expects the general government deficit to rise to about 2.4 billion euros in 2024, partly due to state spending on reconstruction after record floods in August 2023, as well as an increase of public sector wages and pensions this year.
Wages are expected to increase further from the start of 2025, after the government also on Wednesday signed an agreement with some public sector trade unions according to which all public sector wages will rise significantly over the coming three years.
The exact details on wage hikes have not been determined yet but the plan is to increase some public sector wages by as much as 76 percent, Slovenian daily newspaper Vecer reported. The government has agreed to wage hikes because many public sector trade unions, including the unions of doctors, policemen and teachers, have threatened with labor strikes unless their salaries rise significantly.
The Statistical Office also said general government debt amounted to 43.7 billion euros at the end of 2023 versus 41.4 billion a year before, but was reduced to 68.4 percent of GDP from 72.7 percent in 2022. According to the government’s April forecast, the debt is expected to increase to 45.8 billion euros this year. (1 euro = 1.11 U.S. dollar)
