Recalculated on an accrual basis in accordance with the ESA 2010 standard, budget deficits are within the commitments defined in the Stability Programme. The government is thus following the constitutional provisions and the act on the fiscal rule that foresees the balancing of general government revenue and expenditure.
The budget proposal sets the funding priorities for 2016 and 2017, which mainly focus on safety of people and property, including flood safety, health, the judiciary, infrastructure and education. The draft budgets for 2016 and 2017 plan higher revenue, which is mainly the result of the growth in domestic revenue. Therefore, budget users have more commitment appropriations than in the 2015 revised budget, but within limits than ensure further consolidation. The government will thus ensure that priority areas receive more funds to realise their programmes.
The level of investment in 2014-2015 was very high because the period for registering eligible costs falling under the 2007-2013 financial perspective end on 31 December 2015. The planned level of investment expenditure in 2016 and 2017 returns to the 2013 level.
Higher employment and the effects of legislation that introduced paying contributions for student work, ensure higher revenues for the pension budget in 2016 and 2017. The government is also striving to change from grants to repayable funding. Because of forthcoming promotions in the public sector, the fund for salaries and contributions will increase, while, due to a rise in interest rates on global financial markets, this bracket of expenditure will be somewhat higher and more funds will be allocated to the refugee crisis.
The draft budgets for the next two years consider the main goals of economic policy in 2016-2017, which is based on promoting economic growth by addressing crucial challenges in the economic sector, managing companies owned by the state and the business environment and working towards gradual, but permanent fiscal consolidation.