The connection between beekeeping and public finances
Beekeeping in Slovenia not only comes from the rich history, but also represents an important part of the national identity. With a tradition dating back to the 18th century, with an emphasis on care for nature and the economic importance of bee products, beekeeping in Slovenia symbolizes the connection between respect for tradition and a modern approach to preserving the natural balance.
With their constant pollination, bees maintain the balance in nature and have a key influence on food production and care for biodiversity. Pollination also has a significant impact on the economy, as it has almost twenty times greater economic importance compared to the production of bee crops or products.
Beekeeping, with its orderliness and systematicity, offers a good example for understanding certain aspects of public finance. Just as bees ensure the proper functioning of an apiary, public finances ensure the orderly financing of the state’s operations. Just as bees ensure the fertility of nature through their constant pollination, public finance contributes to creating the conditions in which the economy can thrive and flourish, contributing to the well-being of its inhabitants.
The role of bees and ministries in community functioning
In a hive, the organization is crucial, because it allows the hive to function. The most important role has the queen, the mother of all bees. The bees are usually divided by the task they complete. We distinguish between cleaners, contolers, builders, quards and workers. The bees also have trotters, who take care of the atmosphere in the hive. In Slovenia, we have ministries, that take care of their departments. From the public finances perspective, the largest amount of means is allocated towards the Ministry of Finance (5,0 bln €), and Ministry of labour, family,social affairs and equal opportunities (1,8 bln €) and Ministry of education (1,8 bln €). The least means from the budget is allocated towards Ministry of digital transformation (76,3 mio €) and Ministry of Public administration (81,8 mio €).
Hive maintenance and budget management
The bee hive has to be maintained, so the bees could complete their tasks and consequently survive. Every bee has its goal, which contributes to the common result which is survival. The rational budget management contributes to the reaching of the versatile goals, among which are economic growth, social security, equal opportunities for all citizens, and quality life. The institution that performs the controlls over the rational usage of public finance is Office of Budget Control, which ensures the legitimacy and greater degree of purposefulness in the use of funds that belong to the citizens of Slovenia. Along with the Court of Auditors, it controls the operation of government accounts, the budget and the whole expenditure of public funds from the public budget. Fiscal council takes care of the public assessments of the compliance of public finance policy with the fiscal rules.
The rule of the bee queen and the state in caring for offspring
The main role of the queen is to lay eggs into the cells and, by doing so, take care for the offspring. Queens are crucial for the quality and productivity of the bee family. The offsprings inherit qualities, such as calmness, length of the stinger, immunity to different diseases. The queen’s role is similar to the one of the state and public administration, that cares for the population by performing various services, such as regulative, control and monitoring, operative, repressive… With successful completion of the said services, it guarantees favourable living conditions to its citizens, which influences maintaining the birth rate.
Ministry of finance – crucial pillar of the public budget
Queen bee in the hive is two times bigger than the worker bees. In the Slovenian budget, the crucial role is that of the Ministry of finance, that focuses on preparation of the budget and dealing with treasury, public accounting, public finance, tax and customs systems, financial assets, suretyship, public sector borrowing, public-private partnerships and more. In 2023, the Ministry planned expenditures of 4.3 billion, which represents 26.4% of the total expenditures of the state budget.
Hive workers and crucial contribution of the citizens and businesses
The hive contains the majority of worker bees. They are always present in the hive, and their number depends on the season. There can be up to 60,000 of them. A hive cannot survive without bees, just as the functioning of the country is not possible without companies and its residents, who take care of the inflow of income into public coffers. Legal entities include: self-employed entrepreneurs and individuals (114,400), commercial companies (75,525), legal entities under public law (2,789), non-profit organizations (9,077), associations (23,369) and other natural persons (14,091). According to the last available data, the working population was 996,000. Based on the planned revenues, in 2023 legal and natural persons will directly or indirectly contribute 5.1 billion euros to the state budget through VAT, 1.6 billion through personal income tax, 1.6 billion through excise duties and 1.4 billion through income tax legal entities.
Hive hygiene and the role of security forces
Hive bees take care of cleanliness and hygiene in the hive, which could be compared to the role of the police and army in providing security. The police are engaged in a variety of tasks that strive towards the same goal, ensuring security. The police has a wide range of operations, including the Special Unit, the Safeguarding and Protection Centre, the Office of the Director General of Police, the Information Policing Directorate, the Criminal Police Directorate, the National Forensic Laboratory, the Police Specialties Directorate, the Police Academy, the Information and Telecommunications Bureau and the Police Departments. In 2021, 487 million euros were allocated for internal affairs and security, which includes the financing of police and criminal activity, which is carried out from the state budget. The army currently carries out operations mainly abroad, and its role would become crucial in the event of a threat to the country. In 2021, 630 million euros were spent on defense and protection, that is, on the operation of the army.
Bee products and distribution of budget funds
Bee products include honey, propolis and wax, which are also used or consumed by humans. Honey can be found in almost every grocery store and is also a very common food item in our pantries. Propolis is also sold in stores, but we use it especially when we have a cold, as it increases resistance and has a healing effect. Beeswax can be chewed, especially for inflammation of the oral cavity or diseased esophagus and stomach, and for cleaning the nasal part of the throat, and it is also used in cosmetics, pharmacy, medicine and candle making, among other things. If a parallel is drawn with the state budget expenditures, which are estimated at €16.3 billion in 2023, the latter are divided between 24 different policies. In addition to the servicing of past borrowings, which represents the largest share of funds, the majority goes to education and sports, followed by expenditures for social security and transport and transport infrastructure.
Bees extract nectar from flowers with the help of a long tongue that contains sugar, which is an important source of energy. They also gather pollen for protein and other nutrients. Propolis, created from tree matter, protects the hive. Honey is made from dry nectar, providing an important source of carbohydrates. Wax obtained from bee glands is used to build hive cells where honey, larvae and pollen are stored. The Republic of Slovenia receives various revenues, including income tax, corporate income tax, value added tax, real estate tax, inheritance and gift tax, real estate transaction tax, social security contributions, pension and disability contributions, health contributions, unemployment benefits, revenue from the sale of government assets, donations, concessions, customs duties and more.
When food becomes scarce, the worker bees offer trotters from the hive. Since the family does not raise new queens in autumn and winter, they are only a burden to the family during this time. The state does not send inactive residents (pensioners, disabled and students) and unemployed people out of the state, but provides them with assistance and social security. More than €1.5 billion is earmarked for social security policy, or 9.4% of all funds, of which the largest part goes to family allowances and parental allowances. Just under €1.2 billion is earmarked from the state budget for pension protection, while more than €100 million goes to benefits for the unemployed annually.
Life in a bee colony is very hectic and requires constant adaptation. This is seen in the number of bees, which depends on the amount of food available. The number of worker bees changes during the year. In winter, the bees are in the hive and depend on the reserves they save. If there are up to 60,000 of them in the summer, their number can be more than halved in the winter to around 20,000. It is very important to feed the bees, especially if it is necessary to breed a new queen, which must be fed differently than the other worker bees, namely with a special milk. Similarly, the country must constantly adapt its macroeconomic policies to market conditions. In periods of negative economic growth, the state should reduce interest rates as part of its monetary policy, thereby enabling cheaper loans, which encourages investments and the inflow of money. In this way, demand is stimulated and with it also inflation. This policy is called expansionary or stimulatory monetary policy. If the economy or prices (inflation) are growing too fast, countries should conduct a restrictive or inhibitory monetary policy. Borrowing thus becomes more expensive, and economic growth and price growth slow down.
Honey consumption exceeds domestic production and amounts to around 1 kg per inhabitant annually. It has not changed significantly in the last ten years. The level of self-sufficiency has varied between 20% and 85% since 2010, in 2020 it was 67% (compared to domestic consumption/GDP). The export of honey increased from 40 tons to 306 tons of honey in the period 2010-2020 (comparison with the export of Slo in relation to GDP). The import of honey also increased during this period, from 585 tons to 1106 tons of honey. The GDP per capita index in Slovenia in terms of purchasing power is 92% of the EU average. In 2021, the value of exports of goods and services amounted to 83.6% of GDP.
The purchase prices of all types of honey in Slovenia have increased in recent years. In 2010, the purchase price of honey (of all types) was 3.18 euros per kg, and in 2020 it was 5.39 euros per kg (comparison with price growth in general). Beekeepers achieve a much higher price by selling at markets. The price (of all types) of honey in markets has risen from 5.67 euros per kg of honey to 10.08 euros per kg (in 2020) since 2010. According to SURS data, the highest inflation rate in the last year was between July and September 2022 (between 10 and 11%).
The impact of the environment on the life of bees and economic adaptations during the pandemic
The life of bees depends on the environment, which is very important in the life of bees. In addition to the warming of the earth itself, which changes the landscape, bees are also affected by the way of farming. Pesticides are used in agriculture to protect crops from various pests. However, if the use of pesticides is inappropriate or excessive, bees can be poisoned by these chemicals during pollination. It can also happen that due to the unavailable variety of food, the resistance of the bees falls and they get sick. This happens especially in huge fields where only a certain type of fruit or vegetable is grown. Also, the national budget depends on the environment and adapts to current conditions. This was especially felt during the time of COVID-19, when it was necessary to quickly increase public expenditure, because in addition to new equipment, masks, vaccines, provision of capacity in hospitals, it was also necessary to provide assistance to the economy and households. Measures were taken that helped certain companies to maintain their operations, people to keep their jobs and individuals to obtain certain other resources (eg tourist vouchers).
Factors affecting honey production and public finances
The amount of honey produced annually by bees often deviates from the plan, as production depends on many different factors. One of the factors is the weather, as longer rainy and dry periods can make it impossible to collect nectar and flower honey, which reduces honey production. Production is also lower if the meadows are not sufficiently diverse and rich in nectar and pollen, as there are not enough raw materials. There can also be various diseases or even parasites that affect the bees in such a way that their productivity decreases. Pollution and poor beekeeping also have an effect on the lower production of honey. The deviation of actual public financial revenues and expenditures from the planned ones is also influenced by many different factors. Among the more important are economic conditions and political decisions of the government, which affect the final public financial balance.
Risks to bees and public finances
Bees are constantly surrounded by risks such as climate change, pesticides, diseases. The state budget also faces risks such as economic recessions in the international environment, natural disasters, inflation... In order to ensure the long-term sustainability of public finances, budgetary policies have been developed, the purpose of which is to ensure resilience to possible negative risks. Among them is the fiscal rule, which is an initiative of European leaders, with which they wanted to limit state borrowing and ensure the long-term sustainability of public finances of states. It is intended to ensure the medium-term balance of state budget revenues and expenditures without borrowing. In Slovenia, the National Assembly adopted a constitutional act in 2013, which amended Article 148 of the Constitution, which stipulates that state budget revenues and expenditures must be balanced in the medium term without borrowing or that revenues must exceed expenditures.
The connection between public finance and bee protection for a green future
Public finances, or the state budget, and bees can also be directly related, as it is in the interest of the state to protect the environment and a green future, of which bees are also an important part. Namely, bees are evenly populated throughout Slovenia, thereby helping to maintain the balance in nature. By pollinating wild and cultivated plants, they contribute the most to food production. The international expert public attributes 10 to 20 times greater economic importance to pollination than the direct economic importance of bees for the production of bee products. The state must thus ensure favorable conditions for beekeeping, among other things it can help beekeepers with various subsidies for the purchase of equipment, providing assistance to beginner beekeepers and limiting the import of honey from other countries.
Budgetary rebalancing and flexibility even in a changing environment
Although the state budget is generally adopted before the start of the new calendar year and budget period, it can be changed during the course of the year in the event of an emergency, by rebalancing the budget. Thus, the budget for 2023 was supplemented or amended with the Rebalancing of the Budget for 2023 II, which, due to the extent of the floods on August 4, 2023, allocated 520 million euros for aid in the event of natural disasters. All spending of these funds will be carefully planned, and their distribution will be determined by law. If we were to transfer a similar situation to the behavior of bees, we would find that bees adapt to weather phenomena during different periods by collecting nectar from plants that only grow in certain weather conditions. If, due to climate change, bees can no longer collect nectar on a certain plant, they will have to adapt and find a new source.
The role of bees in food security and parallels with fiscal cycles
Bees pollinate almost three quarters of all plants, with which we produce 90% of all food in the world. This means that a third of the food produced in the world depends on bees pollinating it. Bees therefore eliminate hunger in a way and ensure people's survival. If there are many bees, this is a sign that the environment is working well and that there are no reasons for concern. However, when the number of bees begins to decline, changes in protection measures are urgently needed. It is similar in public finances. In good economic periods, we generally record a budget surplus, which Slovenia had most recently in 2019 (525 million euros) and 2019 (264 million euros), in economically worse periods, or in times when the economy and households need greater support from the state in principle, a budget deficit is recorded. In the last three years, Slovenia recorded a deficit mainly due to the consequences of the epidemic, and due to floods in 2023 and weak economic prospects in the EU, a deficit can also be expected in the coming years.