The Government of the Republic of Slovenia approved the draft revised budget for 2013 on 20 June 2013.

The main reason for drafting a revised budget for 2013 was the waning macro-economic forecasts in comparison with the forecasts relevant when the 2013 budget was originally drawn up. At that time the revenue forecast was assessed too optimistically in view of the current situation.

In this budget total revenue was estimated at 8,611.1 million Euros, Updated estimates for 2013, which are based on actual revenue in the first five months of 2013, the Summer Forecast of Economic Trends by the end of 2013 published by IMAD, and envisaged amendments to tax legislation show that total budget revenue will shrink by 6.1 % in comparison to the previous budget.

The revised budget confirms the rise in the VAT standard rate from 20% to 22% from 1 July 2013 and the rise in the lower VAT rate from 8.5% to 9.5%. The revised budget also provides for a new tax on lottery tickets, increased revenue from road tax and a rise in Court fees.

A high risk remains that economic activity for this year and next year will be lower than expected. The risk of a much greater reduction in economic activity than previously expected this year is linked to the international situation, both in terms of the situation in Slovenia’s biggest trading partners and the situation in financial markets. The stabilization of this declining trend depends mainly on the success of the measures to overhaul the banking sector and other planned measures which would ease the credit crunch and help relieve the economy and revive investment.