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Slovenia Business Week no. 34: CCIS Fears Target Cut in Public Expenditure not to Be Met

The Chamber of Commerce and Industry of Slovenia (CCIS) has welcomed the cut in public expenditure envisaged in the budget bills for 2007 and 2008, while it also expressed concern that the 2-percentage-point target cut would not be met by 2008

The Chamber of Commerce and Industry of Slovenia (CCIS) has welcomed the cut in public expenditure envisaged in the budget bills for 2007 and 2008, while it also expressed concern that the 2-percentage-point target cut would not be met by 2008.

Moreover, the CCIS warned on Thursday, 26 October that research and development expenditure was still tailored to the needs of researchers in the public sector, rather than the actual needs of the economy, something that the chamber said it had been warning about for years.

According to its press release, the Chamber is also concerned that the planned reduction in expenditure would not be carried through. "Cuts in budgetary revenues and expenditures are as a rule planned when budgets are being drawn up, while their realisation actually shows an increase."

The CCIS praised the envisaged increase in the budget of the Economy Ministry, saying these funds should encourage economic activity. While welcoming a raise in funds for technological development, the CCIS was disappointed that the structure of the envisaged expenditure should remain almost intact.

The changes to the 2007 budget foresee revenues of EUR 7.7bn and expenditure of EUR 8.1bn. The deficit is to stand at around EUR 325m. In 2008, revenues are to grow to EUR 8.1bn and expenditure to EUR 8.4bn, with the budget deficit at EUR 307m.

Both documents are currently in parliamentary procedure. They were drafted by the Finance Ministry on the basis of macroeconomic trends projected in the autumn economic forecast of the Institute for Macroeconomic Analysis and Development. The 2008 budget bill and the changes to the 2007 budget are to be submitted for final vote in parliament on 16 and 17 November.

Source: Slovenian Press Agency STA

Author: STA, Slovenian National Press Agency