Estonia, Financial Services, Funds

International Internet Magazine. Baltic States news & analytics Thursday, 02.07.2020, 13:28

Estonian govt to approve 2020 allocation from municipalities' equalization, support funds

BC, Tallinn, 20.02.2020.Print version
The Estonian government is planning to endorse on Thursday the allocation of 203.6 million euros to local governments from the equalization and support funds, informed LETA/BNS.

The total volume of the municipalities' equalization and support funds is 562 mln euros, 353.7 mln euros of which was allocated for the operation of general education schools in January.

The purpose of the equalization fund is to help increase the financial capability of municipalities whose incomes are smaller. Payments from the fund depend on the income tax and land tax levels per resident as well as the demographic makeup of the population.

Disbursements from the municipalities' support fund are made for the payment of subsistence benefits as well as to support education, hobby activities and maintenance of local roads.

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