Logar points to a deficit of 16 million, similar problems in culture

The Slovenian government has uncovered significant financial shortfalls across several ministries, with the Ministry of Economy, Labour and Sport reporting a deficit of €16 million this year alone, and an additional €66 million shortfall projected for 2027. The revelations come as the new cabinet assumes its responsibilities and begins assessing the state of public finances. According to Minister Anže Logar, these deficits highlight mismanagement of public funds under the previous administration and underscore the need for urgent corrective measures. The financial gaps were identified during an ongoing review of each ministry's budget and obligations. Logar stated that the Ministry of Economy, Labour and Sport lacks sufficient funding for projects already approved and committed to. He attributed part of the problem to a reallocation of European Union funds by the former finance ministry at the end of 2025, which were not subsequently returned. This led to numerous development projects being left without adequate financial backing. Logar criticized the previous government for taking on financial commitments without ensuring proper funding sources. He emphasized that the current situation does not endanger pensions, but warned against political scaremongering. The minister noted that the government plans to expedite the use of EU funds to maximize available resources within existing programs, aiming to mitigate delays that could affect the implementation of various projects. Similar financial challenges have been reported at the Ministry of Culture. Minister Ignacija Fridl Jarc revealed that her department faces a €8.9 million shortfall by the end of the year to meet all legal and contractual obligations. She indicated that the ministry expects no additional funding from the national budget and has implemented temporary cost-saving measures, including halting some financing processes until a budget rebalancing is achieved. Fridl Jarc highlighted that the financial service of the ministry had previously raised concerns about the potential shortfall during the tenure of former minister Aste Vrečko. However, she claimed these warnings were not adequately addressed. She also pointed out increased operational costs due to a rise in staff numbers and higher expenses for official vehicles. Under the previous minister, Vasja Simoniti, the ministry employed 151 people, whereas under Vrečko, the number rose to 173, resulting in over €1 million in additional annual costs. The financial discrepancies extend beyond immediate project funding and reflect broader issues of resource allocation and management. Logar stressed the importance of efficiently utilizing European funds, which serve as a crucial source of investment in economic development, infrastructure, and regional growth. Delays in accessing these funds could impact the execution of multiple initiatives. The new government has acknowledged the urgency of addressing these financial shortfalls and is working to resolve them swiftly. Logar reiterated the commitment to rectify the situation and ensure that necessary projects receive appropriate funding. Meanwhile, the Ministry of Culture continues to implement temporary measures to manage its budget constraints while awaiting further clarity on financial support. The situation underscores the complexity of managing public finances and highlights the need for transparency and accountability in fiscal planning. As the government moves forward, the focus will remain on resolving existing deficits and preventing future financial imbalances through improved resource management and efficient use of available funding sources.