By the end of October, the central government's (primarily the state budget's) deficit had grown to €841 million, €55 million more than in the same period last year. This deeper deficit was driven by a decline in non-tax revenues as well as a sharp increase in investments and operating expenses, primarily due to defense-related procurement.

In October, the growth of tax revenues slowed, with the largest impact seen in personal income tax, which grew by only 2.2 percent compared to October 2023, according to the Ministry of Finance.

However, over the first ten months of the year, tax collections exceeded projections, mainly due to labor taxes and corporate income tax. In contrast, non-tax revenues for the ten-month period fell short of last year's levels due to lower income from ownership revenues and a decline in CO2 quota prices.

Social security funds as a whole showed a slight surplus by the end of October. However, the Health Insurance Fund (Tervisekassa) posted a small €2 million deficit. For most of the year, the fund has operated in a slight deficit. While reduced healthcare service consumption during the summer led to a surplus at the start of autumn, that surplus has since been depleted, the ministry noted. The financial situation is also markedly worse than in the same period last year, when the fund had a €145 million surplus. Compared to previous years, expenditures have risen sharply, largely due to the significant salary increases from the latest collective agreement for healthcare workers, as well as an above-average amount of overtime work.

The Unemployment Insurance Fund (Töötukassa) recovered from a deficit at the start of the year to post an €18 million surplus by the end of October, a level comparable to recent years. The year-to-date dynamics have followed a similar trend. The labor market remains stable, with the number of registered unemployed falling below last year's levels during the summer and remaining consistently lower than in the past two years throughout the fall.

Local governments reported a surplus of €22 million by the end of October, €5 million more than in the same period last year, thanks to a 10.6 percent increase in personal income tax revenues.

State budget expenditures grew by 7.7 percent year-on-year, driven primarily by domestic subsidies, investments and forwarded tax revenues.

In October, state-budgeted institutions' total expenditures amounted to €1.44 billion, increasing by €102.4 million, or 7.7 percent, compared to October 2023. Domestic subsidies, investments and forwarded tax revenues were the main contributors to the increase.

Expenditures impacting the state budget's position – excluding external funds and forwarded tax revenues – grew by €69 million, or 7.9 percent, compared to October 2023, reaching €940.7 million. The largest increases were in domestic subsidies, investments and financial costs, consistent with trends in previous months. Spending on domestic operating costs and investments rose by €33.1 million in October.

Operating expenses decreased by 2.9 percent, or €2.7 million, largely due to defense-related spending.

Personnel expenses in state-budgeted institutions increased by €6.2 million, or 5.3 percent year-on-year, driven mainly by the growth of the teachers' salary fund.

Investment volumes in October rose sharply, primarily due to defense-related investments and vehicle purchases. State-budgeted institutions invested €28.2 million more in October compared to the same period last year, representing an annual growth rate of 44.8 percent. Over the first ten months of the year, investments increased by 36.5 percent, or €179.3 million, compared to the same period in 2023.

Financial costs have been consistently rising since October 2022 due to bond issuances and the increase in Euribor rates. Financial costs in October 2024 were €3.4 million, or 19.3 percent, higher than in the same period last year.

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