Slovenia's Budget Deficit Expands to 953 Million Euro in First Nine Months of 2025

Slovenia Reports Widening Budget Deficit

Slovenia's budget deficit for the first nine months of 2025 has expanded to 953 million euro. This figure represents a substantial increase of 487 million euro when compared to the deficit recorded during the same period in 2024. The Ministry of Finance has highlighted several factors contributing to this widening gap between state revenues and expenditures.

Key Drivers of Increased Expenditure

The primary reasons behind the growing deficit are linked to a rise in government spending. According to recent reports, expenditures have seen an increase across several key areas. These include:

• Increased transfers to the pension fund.
• Higher labour costs within the public sector.
• Costs associated with the implementation of public services in scheduled transport.

Budget revenues for the January-August period of 2025 rose by 1.4% to 9.3 billion euro, while expenditures grew more significantly by 8%, reaching 10.4 billion euro. This disparity in growth rates between revenue and expenditure has been a critical factor in the deficit's expansion.

Impact of Flood Reconstruction Efforts

Ongoing efforts to reconstruct areas devastated by the severe floods in August 2023 continue to exert pressure on Slovenia's public finances. The government had previously anticipated that flood-related spending would contribute to a higher general government deficit in both 2024 and 2025. The draft budget for 2025 had projected a full-year deficit of 1.26 billion euro, equivalent to 1.8% of GDP, partly due to these reconstruction measures and other planned increases in public sector wages and pensions.

Outlook on Public Finances

The widening budget deficit underscores the fiscal challenges facing Slovenia. While revenues have shown some growth, the accelerated pace of expenditure, driven by social transfers, public sector remuneration, and significant post-disaster recovery investments, has outstripped revenue collection. The government's ability to manage these fiscal pressures will be crucial in maintaining economic stability in the coming months.