Since independence in 1991, Slovenia has successfully transitioned to an advanced economy. It is, however, challenged by a constrained resource base that limits its potential for economies of scale, by import dependence, and by sensitivity to the economic difficulties experienced by its key trading partners. In 2009, Slovenia suffered a severe economic recession, resulting in a strong deterioration in public debt. Since then it has implemented a series of urgent fiscal consolidation measures driven by expenditure reduction-measures focused on reducing public sector employment and the public sector wage bill. Slovenia’s fiscal consolidation strategy is ambitious in its aims. The effects of the strategy on the efficiency and effectiveness of the public administration will need to be taken into account.