He announced on news show Odmevi that the government will borrow around EUR 1bn this year, and that some borrowing will have to be made next year also.
In recent years, Slovenia borrowed EUR 2bn a year, which is why we had a 6% budget deficit, while austerity measures will allow the government to borrow less this year, about EUR 1bn, according to Janša. Budget deficit will therefore be at 3% or half of the budget deficit in recent years, he said, adding that reduction of the deficit is also one of the requirements of the EU institutions.
Janša noted that while stripping public office holders of their privileges, as proposed by the government as part of austerity measures, would not save hundreds of millions, it would save several tens of millions, which is also a significant amount. He assessed that an extension of the fiscal austerity act freezing pay in the public sector, pensions and some social transfers could generate a somewhat less than EUR 250m in savings. The act is in force until the end of June. Measures have to be taken soon, as a supplementary 2012 budget must be adopted by the end of April. On 11 May the EU will assess member states, and if Slovenia fails to take measures, it will get a negative mark. This means further downgrades of credit ratings and even more expensive borrowing, Janša said.
SOURCE: The Slovenia Times
