170th Regular Session of the Government of the Republic of Slovenia

The Government approved the draft amendment to the state budget for 2026 and the draft state budget for 2027, together with the accompanying budget documents. The priority areas remain science, housing policy, economic development and resilience, and security. The Government devoted considerable time to budget coordination, also in view of important systemic reforms being implemented or prepared in the fields of pay system reform, long-term care, healthcare, pension reform, and defence expenditure. These are major changes that also affect the planning and implementation of budgets. In preparing the budget documents, the Government also took into account the Medium-Term Fiscal Structural Plan of the Republic of Slovenia 2025-2028, the autumn economic forecast of the Institute of Macroeconomic Analysis and Development, as well as the implementation of the Recovery and Resilience Plan, European cohesion policy under the Multiannual Financial Framework 2021-2027, and the absorption of other EU funds. In 2026 and 2027, the focus will remain on measures aimed at strengthening science, ensuring adequate and affordable housing, encouraging investment and accelerating the transition to a high-productivity economy, pension and healthcare, and resilience and security. For 2026, revenues are planned at EUR 15.6 billion and expenditures at EUR 17.7 billion. Compared to the budget adopted last year for 2026, revenues are lower by 2.1 percent, while expenditures are higher by 3.2 percent. The budget deficit is projected at EUR 2.1 billion, or 2.9 percent of GDP. For 2027, revenues are planned at EUR 16 billion and expenditures at EUR 18.1 billion. The deficit is thus projected at EUR 2.1 billion, or 2.8 percent of GDP.

The Government also approved the draft Act on the Implementation of the Budgets of the Republic of Slovenia for 2026 and 2027, which among other things regulates the average per capita transfer for municipalities. This is expected to amount to EUR 810, which is higher than the agreement reached with municipalities in October last year. Negotiations with municipalities on the transfer for the next two years are not yet concluded; in the event of a different agreement, the Act and the amount of the transfer will, as usual, be adjusted during the parliamentary adoption procedure. The annual pension supplement will also be paid next year in different amounts, namely in five categories ranging from EUR 160 to EUR 470. The proposal also provides for an adjustment of the income tax scale and allowances for 2026 in the amount of 50 percent of the growth in the average monthly wage in Slovenia in June 2025 compared to June 2024. Social partners will continue discussions on this matter, and if a different agreement on the adjustment is reached, the Act will be adjusted during the parliamentary adoption procedure. The Government also determined the final proposal of the annual state budget statement for 2024.

With the proposed amendments and supplements to the Tax Procedure Act, the European directive on administrative cooperation in taxation, which regulates the obligation to report and the automatic exchange of information between the tax authorities of EU Member States on income from crypto-asset transactions, is being transposed into Slovenian law, as well as the European directive on administrative cooperation in taxation, which introduces a harmonised framework for the submission of a single information return for the calculation of top-up tax and at the same time extends the scope of the automatic exchange of information to the information return for the calculation of top-up tax. Other amendments and supplements to the existing provisions of the tax procedure are intended to ensure transparency, efficiency, and proper implementation in practice, certainty and predictability of the conduct of taxpayers and other participants in fulfilling tax obligations, of the tax authority in managing tax procedures, and easier and faster exercise of taxpayers' rights and legal benefits.

The Government today unanimously adopted a measure against Benjamin Netanyahu, Prime Minister of the State of Israel, following measures already taken against two extremist Israeli ministers. Proceedings are under way against the Israeli Prime Minister for war crimes and crimes against humanity. On 19 July 2024, the International Court of Justice already found that several Israeli policies and practices violated both international humanitarian law and human rights law. With this decision, the Government is sending a clear message to the State of Israel that Slovenia expects consistent respect for the decisions of international courts and international humanitarian law. With this action, Slovenia reaffirms its commitment to international law, universal values of human rights, and a principled and consistent foreign policy.

In 2025, the Government of the Republic of Slovenia will allocate a contribution of EUR 1,200,000 for the functioning of the Palestinian Authority, which will be implemented by the Ministry of Foreign and European Affairs through the EU PEGASE mechanism. The Ministry of Foreign and European Affairs (MFEA) assesses that the continuous functioning of the Palestinian Authority is essential for the establishment and preservation of Palestinian statehood. Given that the Republic of Slovenia recognised the State of Palestine on 4 June 2024 and actively participates in initiatives to implement the two-state solution, it is essential to support Slovenia's political commitment with financial resources. In the second half of September 2025, the French Republic, the Kingdom of Spain, the Kingdom of Norway, and the Kingdom of Saudi Arabia established the Emergency Coalition for the Financial Sustainability of the Palestinian Authority. The Coalition's plan is to provide USD 200 million per month over the next six months to assist the Palestinian Authority. After six months, an evaluation of the effectiveness of the assistance will be carried out. The founding states have invited the Republic of Slovenia to participate as an active member of the United Nations, on the basis of its previous humanitarian engagement for the Palestinian population and its consistent support for diplomatic and political efforts to resolve the Palestinian question.

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