Government approves 100-day action plan
The new Estonian government set an ambitious target on Thursday and approved the action plan for fulfilling the priority objectives in the coalition agreement within the first 100 days in office.
To strengthen the security, the government will keep defense expenditure at least at two percent of the GDP. The presence of NATO in Estonia will be continued and a necessary infrastructure will be developed for receiving the units of allies.
Estonia-Russia border will be trimmed and tidied up, although it is expected that the full construction of proper border markings will take until 2018.
The government is also aiming to reduce labor taxation, albeit with a price of increasing the excise duties on diesel fuel, tobacco and alcohol. The social tax will be decreased by one percent - from 33 to 32 percent. The tax-free income will be raised from 154 euros to 205 euros per month. An annual repayment system will also be created for people with low income.
Child allowances will get a small boost, increasing from 45 euros to 60 euros per month for the first and second child. Families raising three and more children will receive an additional large families benefit of 200 euros. The government said that it is also preparing to support and invest in the creation of nursery school places, currently the responsibility of local governments.
To help along the economy, draft acts for amending the Investment Funds Act and the Securities Market Act will be prepared, for simplifying investment rules and supporting the development of the domestic capital market, as well as for enabling Estonian pension and investment funds to invest into the Estonian economy at a larger scale than at present.
Government is also planning to create a “global Estonia network”, comprising of Estonian foreign missions, honorary consuls and business ambassadors, compatriots living and working abroad, Estonia’s friends and their associations.
The new Cabinet, formed by the Reform Party, the Social Democrats and IRL, assumed office on April 9.