Riigikogu approves 2023 state budget

A Riigikogu sitting.
A Riigikogu sitting. Source: Siim Lõvi /ERR

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

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