Economists see the government's decision to take advantage of the favorable economic conditions and make plans for a budget surplus – although only 50 million euros – as positive. Photo: Reuters Foto:
Economists see the government's decision to take advantage of the favorable economic conditions and make plans for a budget surplus – although only 50 million euros – as positive. Photo: Reuters Foto:

But there is still a risk for the surplus to once again turn into a deficit, as the surplus is founded on an extremely high economic forecast. According to the 4-percent economic growth forecast, revenues are to increase by more than 4 percent, while expenditure by around half a percent.

Analyst Bojan Ivanc from the chamber of commerce says it is certainly a good thing when expenditure is falling and there is an increased inflow, as that will lead to more funding for investments. "Most of the new revenue will be used to lower the public debt, which is relatively good news," explains Ivanc.

Economist Igor Masten is of the opinion that the economic boom should be used to speed up the balancing of public finances: "You see a bunch of elements, like for example the increase in transfers, which are typically pro-cyclical. Then a recession happens, and transfers which shouldn't be cut are slashed by force."

According to the Constitution the government has to prepare balanced budgets. The Fiscal Council will determine where the government is on the right track.