President promulgates 2021 State Budget Act
President Kersti Kaljulaid on Tuesday promulgated the 2021 State Budget Act, as well as legislative amendments concerning a pension increase and enabling an increase in the debt burden of municipalities.
Under the State Budget for 2021 Act, the expenditure and investments of the budget will total €13.1 billion and revenue €11.2 billion. Compared to the original budget for 2020, revenue will grow by 5 percent or €534 million and, taking into account the amendments made with the supplementary budget, by 12 percent, or by €1.2 billion.
Expenditure and investments will grow by around one billion euros compared to the original budget for 2020 and by 5 percent or 0.6 billion euros, taking into account the changes made with the supplementary budget.
The amendments to the State Pension Insurance Act and associated acts will see the base amount of pension will increase by €16 a month in Estonia from April 1, 2021. As a result, the pension will increase for approximately 320,000 people in total. The national pension rate will increase by €30 to to €251.61 a month. The rise in the national pension will concern over 3,000 people. In addition, the amendment will increase the extra paid to pensioners for the raising of children. That change will affect approximately 203,000 people.
The Act on Amendments to the Local Government Financial Management Act, which was also promulgated by the president on Tuesday, will enable local governments to increase their net debt burden. This is necessary in order for local governments to be able to borrow more during and in the wake of the COVID-19 crisis to stimulate the economy and make necessary investments under conditions of slower revenue growth in 2020-2027.
Furthermore, the president promulgated the Act on Amendments to the Act on the Ratification of the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting, which corrects technical errors in the act. The amendments bring the Estonian text of the ratification act into conformity with the original English text of the notifications and reservations.
Kaljulaid also promulgated the revised Act on the Ratification of the Council of Europe Convention on Cinematographic Co-production. The convention aims to foster international cinematographic cooperation in Europe. As a result of accession to the convention, it will be possible for Estonian cinematographic producers to join international co-productions more easily, thereby expanding the creative and financing opportunities to make film projects.
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Editor: Helen Wright