Analytics, Budget, Estonia, Financial Services

Of external finance, 479.5 mln euros or 45.1 % of the budgeted full-year amount had been used. Fiscal receipts during the first 10 months of the year totaled 8.12 bn euros, 78.8 % of the amount budgeted for the full-year, the Ministry of Finance said on Monday.

Allowances and benefits accounted for half of the expenditures and investments, making up 4.01 bn euros of the total expenses of the state, whereas the sum total included social allowances in the amount of 2.09 bn euros, of which pensions made up 1.48 bn euros. The next biggest items were the compensation and support fund for municipalities in the amount of 442.4 mln euros and parental benefit in the amount of 198.3 mln euros. Altogether 183.4 mln euros was paid as work ability allowance and 164.1 mln euros in the general budget of the European Union.

A third of the expenses and investments was made up of other operating costs with 2.59 bn euros. These mainly include forwarding paid tax income. Of these, the largest sources of expense were social tax to the Health Insurance Fund in the amount of 992.6 mln euros, personal income tax to local governments in the amount of 898.2 mln euros, payments to funded pension funds in the amount of 347.3 mln euros and unemployment insurance payments to the Unemployment Insurance Fund in the amount of 155.2 mln euros.

Labor and operating costs totaled 1.15 bn euros, making up 14.2% of total expenses and investments. Labor costs amounted to 666 mln euros and operating expenses totaled 485 mln euros. The largest groups of expenditure were wages totaling 618.4 mln euros, costs related to buildings and facilities in the amount of 139.6 mln euros, social services in the amount of 80.1 mln euros, travel expenses in the amount of 35.8 mln euros and expenses on vehicles in the amount if 30.8 mln euros.  

Investments totaled 348.2 mln euros, or 4.3% of all expenditures and investments. This entails the government's own investments, plus investment support reflected under support. 

Greatest investment groups included buildings and facilities in the amount of 228.7 mln euros, defense-related special equipment in the amount of 35.6 mln euros, IT investments in the amount of 31.5 mln euros and means of transport in the amount of 29.2 mln euros.

The state's receipts in 2018 are budgeted to total 10.31 bn euros and expenditures and investments 10.83 bn euros inclusive of carryovers. Compared with 2017, budgeted income is bigger by 826.7 mln euros or 8.7 % and budgeted expenditures and investments are bigger by 929 mln euros or 9.4%.

External finance makes up 1.06 bn euros or 10% of the total expenditures of the state budget in 2018. EU structural and investment funds of the 2014–2020 budgetary period make up approximately 80% of the external support in 2018.

The Treasury's liquid assets, that is deposits and bonds, stood at 1.20 bn euros at the end of October, of which 756.6 mln euros was the liquidity reserve, 29 mln euros the ownership reform reserve fund, and 412 mln euros the stabilization reserve.

Compared to the end of 2017, the liquid assets increased by 42.1 mln euros or 3.5 %. The liquidity reserve increased by 38.4 mln euros or 5.1%, the ownership reform reserve fund by 3.9 mln euros or 15.1% while the size of the stabilization reserve was on a par with the end of last year.

The volume of the liquidity reserve has grown in the first 10 months of the year due to the increase in assets of the social security funds managed and the foundations established by the state.