Budget, Estonia, Financial Services, GDP, Legislation

In 2014 and 2015, Estonia ran a small fiscal surplus, with the nominal surplus of the two years amounting to 120 million euros combined. Prime Minister Taavi Roivas said the government wishes to go on with a balanced budget, as this increases the competitiveness of Estonia's economic environment, a press release published by the government communication office said.

The fiscal strategy lists as the priorities of the Estonian government strengthening the security of Estonia, promoting economic growth, supporting economically vulnerable social groups and carrying out a government reform and reform of local administration.

In examining the applications of ministries for additional funding the government will focus primarily on activities related to its priorities and discuss, in addition, also other applications having a long-term impact. In 2017, several changes with a significant fiscal impact agreed earlier will take effect. These include an increase in tax-exempt income, a reduction in social tax, introduction of the tax reimbursement for low income earners, and a rise in family allowances.

The budgetary strategy will be completed by the end of April.

On the basis of the strategy ministries will continue drafting the bill of the state budget for 2017 that will be put before the government in the fall.

The national budget strategy is reviewed each spring. As part of the review plans for the three coming years are adjusted and the end of the period covered by the strategy moved on by one year.