Slovenia 2017 budget: break with austerity
- Budget bets on very optimistic macroeconomic scenario, aimed to hide higher spending
- While general govt deficit target may be very hard to reach, we don't see deficit likely to rise
- Personal income tax cut planned for high-income earners
- Cut to be funded through a 2pp hike in corporate income tax, to 19%
- Health insurance fund still an overspending risk, even with higher resources
- Central government revenues rely mostly on higher absorption of EU funds
- Tax revenue forecast looks conservative, though, may prove to be a safety cushion
- Transfers provide primary boost to expenditure growth at central govt level
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