Slovenia's parliament on Wednesday adopted a budget revision which forecasts a higher than ever budget gap of €4.2 billion as a consequence of the negative impact of the Covid-19 pandemic on its economy.

Defending the budget revision, Prime Minister Janez Jansa and Finance Minister Andrej Sircelj underscored that the planned deficit is the highest ever and that this was a consequence of locking down the economy during the first wave of the coronavirus when revenue had decreased and budget expenditure increased as result of subsidies to companies and citizens to help them deal with the situation.

The planned deficit will amount to 9.3% of Slovenia’s GDP. Nevertheless based on the latest forecasts the deficit will be a little less than had previously been estimated and the government is endeavouring to gradually reduce that gap and once again achieve a budget surplus, Minister Sircelj said.

The budget revision plans revenue to be reduced by €1.6 billion to €9.2 billion while expenditure will increase by €3 billion to €13.4 billion. The government has already taken a loan of €2 billion to help fill the budget gap.

In the 90-seat legislature, the revision was supported by 49 lawmakers while 31 voted against it, mostly opposition MPs who criticised the huge increase in debt and reduced funds for culture, science and education. The budget has increased funds for the ministries of finance, economy and health as well as social welfare and for subsidies during the coronavirus crisis.