Social costs to grow by leaps and bounds in state budget

Money. Source: Siim Lõvi /ERR

2023 state budget expenditure comes to €16.79 billion, up 18 percent from forecasts for 2022. Social expenses are set to grow the most.

The largest share of expenses or €9.48 billion is made up of appropriations for legal persons. Benefits paid to individuals amount to €3.99 billion and state agency expenses to €3.32 billion.

Social benefits will grow the most, by 24 percent or €765.9 million. Pension insurance makes up 66 percent therein, family benefits 12 percent, and parent's pay 10 percent. The growth of the social benefits budget comes mostly from pensions and family benefits. Restoring the funded pension payments also has a considerable effect.

Other benefits will grow by €607.7 million or 17 percent. These primarily include higher education and Estonian language education transitions sums, we well as energy support.

Transferrable taxes, mostly money going to the Health Insurance Fund from social tax receipt, pension payments, unemployment insurance premiums and local governments' share of taxes, will grow by 13 percent or €526.3 million.

Labor and administrative expenses will grow by 17 percent compared to the 2022 plan, or by €339 million. Administrative costs will grow the most in the administrative area of the Ministry of Finance (50 percent). The administrative areas of the education and internal affairs ministries are also set to see solid addition.

Administrative costs in the Ministry of Defense's admin. area, that include munitions, conscript and international training, will grow the most. Labor costs will grow by 15 percent to €170.4 million in the admin. area.

Investments will grow by 4 percent in 2023. Real estate investments aimed at the Rail Baltica project and road construction will grow the most (56 percent). The Ministry of Defense and Ministry of Education and Research's investments have the greatest effect on the budget.


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Editor: Marcus Turovski

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