Budget, Estonia, Financial Services, Legislation

The state budget revenues will increase by 4.3% as compared to what is expected to be collected this year, to 8 billion euros. Expenditures will increase by 4.9% to 8.06 billion euros.

The nominal budget deficit is planned at 0.4% while the budget will have a 0.7% structural surplus.

Finance minister Jürgen Ligi pointed our one-time increase of equity capital of Estonian Air as one reason for the nominal budgetary deficit.

Tax income is expected to increase by 6.5%, non-tax income is expected to fall by 8.3% die to fall of exterior means.

The tax burden will fall by 0.3% to 32.1%, which is the lowest level in the past six months. The government sector debt burden will be 10% of GDP by the end of the next year.

The government will increase wage funds of all governance spheres by 5.1% but in some spheres, a bigger wage increase is possible due to reforms, i.e. the minimum wage of teachers should increase by at least 12%. Pensions will increase by 5.8%.

The budget of the culture ministry grows the fastest, by 21%, as several theatres will undergo renovations and the Estonia National Museum construction is underway.

The government will hand over the budget to the parliament on Wednesday.