Supplementary budget bill: key points
The Estonian government submitted its supplementary budget bill to the Riigikogu on Thursday. ERR's Estonian-language online news portal has provided an overview of the bill's key points.
- The government sector's nominal budget deficit this year has been forecast at €1.5 billion, or 5.7 percent of Estonia's GDP.
- Average wage growth is expected to slow to 0.6 percent.
- Social tax receipts are to decrease 6.8 percent in 2020, or €461 million compared with the state budget.
- €400 million less in social tax receipts is forecast for 2021.
- Forecast 2020 VAT receipts have been reduced by €328 million, or 6.5 percent compared with the budget forecast.
- Forecast 2020 excise receipts have been reduced by €142.3 million compared with the budget forecast.
- Fuel excise receipts are expected to fall the most.
- The State Treasury's negative cash flows are expected to increase to €1.7 billion this year.
Separate major measures
- Reducing interest rate on payment schedules for tax debts from the current 50 percent to up to 100 percent — cost of €141 million.
- Temporary halting of payments into the second pension pillar — revenue of €142 million.
- Kredex measure for renovation of apartment buildings and houses — cost of €100 million.
- Kredex sureties for relieving bank loan repayment schedules — cost of €103.5 million.
- Unemployment Insurance Fund labor market support measure over two-month period — cost of €250 million.
- Taxes given to local governments to be reduced: income tax by €192.8 million and mineral rights fees by €320,000.
- Land tax receipts to increase by €1 million.
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Editor: Aili Vahtla