Page 71 - Central & Southeast Outlook 2020

invested in capital projects.
The 2020 budget includes pension and public sector wage hikes and more spending on infrastructure projects.
The independent state fiscal council has said that Serbia's budget for 2020 is relatively well planned but that the already implemented increase in public sector wages poses fiscal risks. It says the biggest economic mistake of the government in drawing up the budget was the decision to increase public sector wages by 9.6%, which predetermined a large share of the expenditure in the budget for 2020.
On the other hand, the council noted that the remaining budget funds have been mainly well distributed, assessing the budget draft relatively positively.
3.11 ​Budget - Slovenia
The ​Slovenia​n government plans surpluses for both 2020 and 2021 of about 1% of GDP.​For 2019, the ​Slovenia​n budget surplus is projected to reach €194mn, or 0.4% of ​GDP.​
The central bank has said that the government budgetary plans are exposed to significant downside risks, including a possible slowdown in economic growth.
The European Commission​​said that in 2020, tax revenue growth is forecast to remain moderate, due to changes adopted to reduce the tax burden on labour. Higher social transfers, further public sector pay rises and higher absorption of EU funds will drive expenditure growth. In 2021, somewhat strengthening private consumption and higher wages should continue to support the surplus. The downside risks to public finances stem from expenditure pressures, particularly on wages and social benefits, and the possibility of unexpected one-offs due to unfavourable court rulings. Lower than projected economic growth could put downward pressure on revenues.
The government budget balance is forecast to remain in surplus, with a slightly improving structural balance position in the coming years.
4.0​ ​Debt
4.1 ​Debt - Albania
The government expects that by the end of 2020 Albania’s public
71​ CESE Outlook 2020​ ​ ​www.intellinews.com