While the ministry originally forecast a budget deficit of 6.7 percent of GDP for 2022, this has been revised to 3.3 percent.

Kadri Klaos, head of the ministry's' public finance service, said that: "The latest reliable data on the general government deficit dates from the end of October, when the deficit amounted to 1.5 percent of annual GDP. The cause of the strong budgetary position in October was the income tax paid in by those who left the second pillar of the pension scheme," referring to employer/employee contributions and membership of which is now optional.

The situation regarding the deficit may have deteriorated between October and the end of this year, however, Klaos added, as investments get accounted for and procurements from earlier on in the year are also factored in.

"The end of the year has usually led to a significant deterioration in the[budgetary] position, mainly due to a number of investments being reflected as expenditures," Klaos said.

As for November and December, Klaos said that: "Looking ahead to the last two months, a deficit in the range of 2.6-3.4 percent can be forecast. This means that there is a likelihood of an improvement on the summer forecast, but there is no complete certainty of this," adding that road-building, school buildings and investments into defense were examples of these expenditures.

Regional investment and crisis spend relating to the pandemic are also factors, Klaos said.

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