Slovenia faces deep public‑finance deficit as new government plans cuts

The Janša‑led Slovenian government says the previous administration of Robert Golob allowed unsustainable spending growth, creating a structural budget gap that may exceed 3% of GDP. In the first five months of 2026, consolidated public‑finance outlays rose by €1.5 billion – about 16% year‑on‑year – driven by higher wages, expanded social transfers and increased procurement. The new cabinet plans a 2026 budget rebalance, aiming to restore fiscal discipline without introducing new taxes, with a detailed proposal expected in the coming weeks and parliamentary approval slated for September.

At the same time, the Ministry of Demography, Family and Social Affairs reported an almost €180 million shortfall, largely due to the 16% raise in the statutory minimum wage that was largely omitted from its budget. Minister Mateja Ribič warned that the gap will have to be covered by other budget lines and announced tighter oversight of social‑transfer spending.