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Keeping Slovenian Public Finances on a Sustainable Path

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  • Pierre Beynet
  • Willi Leibfritz
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    Abstract

    This paper examines various aspects of fiscal policy in Slovenia, in particular fiscal consolidation, pension reform, efficiency of government spending and the tax system. It finds that Slovenia belongs to the group of new EU member countries, which have given in the past a high priority to fiscal prudence. This both stabilised the economy and paved the way for entry to the EU in 2004 and adoption of the euro in 2007. It also created room to counteract the current weakening of the economy. But fiscal policy has to cope with four main challenges: i) ensuring a return to fiscal consolidation after the current economic downturn; ii) achieving longer-term fiscal sustainability by continuing pension reform; iii) limiting growth of public spending and improving its quality; and iv) making the tax system less distorting for job creation and growth. This Working Paper relates to the 2009 OECD Economic Survey of the Slovenia (www.oecd.org/eco/surveys/slovenia). Assurer la viabilité des finances publiques slovènes Cet article examine différents aspects de la politique budgétaire de la Slovénie, en particulier l’assainissement budgétaire, la réforme des retraites, l’efficience des dépenses publiques et la fiscalité. La Slovénie peut ainsi disposer d’une marge pour contrecarrer l’affaiblissement actuel de son économie. Mais la politique budgétaire se trouve confrontée à quatre problèmes majeurs : i) faciliter le retour à l’assainissement budgétaire après le ralentissement économique actuel ; ii) assurer la viabilité budgétaire à plus long terme en poursuivant la réforme des retraites ; iii) freiner la croissance des dépenses publiques et améliorer la qualité de ces dépenses ; et iv) faire en sorte que le système fiscal fausse moins la création d’emplois et la croissance. Ce Document de travail se rapporte à l’Étude économique de l’OCDE de la Slovénie 2009 (www.oecd.org/eco/études/slovénie).

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    File URL: http://dx.doi.org/10.1787/220657632455
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    Bibliographic Info

    Paper provided by OECD Publishing in its series OECD Economics Department Working Papers with number 734.

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    Date of creation: 12 Nov 2009
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    Handle: RePEc:oec:ecoaaa:734-en

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    Keywords: public spending; pension reform; fiscal sustainability; taxation; fiscal policy; Slovenia; generational accounting; comptabilité générationnelle; Slovénie; réforme du système de retraite; fiscalité; dépenses publiques; politique budgétaire; copaiement;

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