Riigikogu approves 2023 state budget
The 2023 State Budget Bill passed its third and final Riigikogu vote Wednesday, by 79 votes to two, meaning the state budget for next year will go ahead.
Seventy-nine MPs voted in favor of the bill at the 101-seat chamber; two MPs, Siim Kiisler and Mihhail Stalnuhhin (both independents) voted against it.
The Riigikogu breaks up for Christmas next week meaning, along with the fact that a general election is to be held in March, there has been a slew of bills voted on this week. The state budget in particular must pass ahead of the year to which it pertains.
The 2023 state budget provides for revenues totaling €15.6 billion, and expenses of €16.8 billion, meaning it runs at a deficit.
2023 State Budget quick facts:
- Revenues up €2.2 billion on year.
- Tax burden will be 33.3 percent of GDP.
- Structural deficit to remain at 2.6 percent.
- Defense costs to exceed one billion euros for the first time ever, and will constitute 2.9 percent of GDP (the requirement for NATO membership is 2 percent of GDP – ed.).
- Family allowances to rise by €177.1 million. Allowances for large families to increase, as well as child allowances for the first and second child in the family, plus the allowance for single parents.
- Together with the extraordinary pension increase and indexation, the average old-age pension to rise to €704 per month. The general tax-free income will rise to €654 per month from the start of the year.
- Average old-age pension to be income tax-free from the new year.
- €41.5 million to be added higher education funding, which will rise by an additional 15 percent in each subsequent year.
- €41 million to be contributed to the transition to Estonian-language education annually.
- €243 million in salary increases; the salary funds of teachers, cultural workers and employees responsible for internal security to be boosted by 15 percent.
- Minimum school teacher wage to increase by 36 percent; minimum police officer wage to rise by 17 percent.
- State to support investments in energy efficiency and renewable energy and housing to the tune of €166 million.
Editor: Andrew Whyte, Barbara Oja