Lower economic growth to cost state €100 million
The new government is facing a 100-million-euro budget hole in the next few years if the revised forecasts for economic growth materialize.
When the 2015 budget was drawn up, the Ministry of Finance had predicted a 2.5-percent economic growth for 2015 and 3.5 percent for 2016, but those figures have been cut to 2 and 2.8 percent respectively, meaning the Cabinet will have to find 100 million euros to balance the budget, Eesti Päevaleht reported.
Finance Minister Sven Sester said the state will take out additional dividends, cut back on ministerial expenses and review future spending. A Cabinet meeting on Thursday already found 22 million euros but the rest could prove to be more difficult, especially as the new coalition came to power on the back of promises of tax cuts and increased benefits.