Budget, Estonia, Financial Services, Investments, Taxation

Expenditures financed from the budget totaled 8.33 billion euros, 7.2% more than in 2014. The biggest increase, by 23.8%, was registered in investments by the state. EU subsidies and other subsidies were used in a smaller amount than in 2014 because the disbursement of subsidies of the new period has not got under way to the full extent yet, the ministry said.

Money collected as taxes during the year made up approximatel 90% of the total revenue of the state. Tax inflow totaled 7.13 billion euros, 483.1 million euros or 7.3% more than the year before. The increase originated mainly in bigger receipts of value added tax (VAT) and social tax.

Of the biggest tax items, social tax made up 2.39 billion euros, VAT 1.86 billion euros and excise duties 873.0 million euros. The biggest increase was registered in VAT receipts, which grew by 161.4 million euros or 9.5%, and in receipts of social tax, which grew by 160.4 million euros or 7.2%. Carryovers totaled 1.19 billion euros, 56.2 million euros or 5% more than at the end of 2014.

Inflow of non-tax revenue came to 852.2 million euros, 311.8 million euros less than the year before. The main reason for the reduction was a 42.3% drop in the use of EU and other subsidies. Sales of goods and services contributed 162.5 million euros and other income 148.1 million euros.

Expenditures financed during the year totaled 8.33 billion euros, marking an increase of 556.8 million euros. More than half of the increase, or 256 million euros, consisted of payouts of pensions, health insurance, unemployment insurance and other subsidies. Of different categories of expenditure, subsidies totaled four billion euros, other operating expenses 2.54 billion euros and labor and administration costs 1.44 billion euros.

Investments, at 468.8 million euros, were smaller by 9.5% than in 2014. Investments by state institutions totaled 337.3 million euros, which is 23.8% more than in 2014. Investment support provided from the state budget came to 131.6 million euros, 114 million euros or 46.4% less than the year before. The reduction in payouts of investment support was a result of smaller use of external funds compared with the amounts budgeted for 2015.

Payouts of external subsidies inclusive of advance payments totaled 658.9 million euros, 65.5% of the amount budgeted for 2015.

The Treasury's liquid financial assets, or deposits and bonds, amounted to 1.15 billion euros at the end of December, of which 733.1 million euros was in the liquidity reserve and 398.5 million euros in the stabilization reserve. Compared with the end of 2014, the sum total of liquid assets managed by the Treasury declined by 347.6 million euros or 23.3%.

The general government budgetary position at the end of November 2015 was a surplus of 53.1 million euros or 0.3% of GDP. The central government budget ran a deficit of 44.8 million euros and the budget of the Health Insurance Fund a deficit of 26.6 million euros. The budget of the Unemployment Insurance Fund has been running a surplus since the beginning of 2015 and the size of the surplus as on Nov. 30 was 42.7 million euros. Also the budgets of municipalities had been running a surplus since the start of the year and the size of the surplus at the end of November was 81.8 million euros.