Last year's Estonian state budget deficit smaller than forecast
On Thursday, the Estonian government received a preliminary assessment of last year's state budget performance, which showed that the deficit remained at two percent, rather than the three percent previously forecast.
"The budget deficit was lower than initially forecast, which is positive news. We received slightly more, which is positive news," said Prime Minister Kristen Michal (Reform).
Minister of Finance Jürgen Ligi (Reform) said the deficit reduction was due to increased taxes and the state's contribution to cost savings. The deficit was also reduced because some of last year's defense spending has been carried over into this year's budget, at the request of a major ally, who will receive their procurement before Estonia,.
"Contracts have been signed and the equipment will probably arrive in January. These are optical problems, they are not policy choices," Ligi said.
Both last and this year's state budgets were also presented on Wednesday to the Riigikogu's State Budget Control Committee. Auditor General Janar Holm, who attended the session, said the exact results of last year will only be known in a few months, meaning it remains too early to comment on them. However, it emerged that, despite significant cuts, this year's budget has still increased by €155 million.
"Has the volume of public expenditure on labor, management and other forms of support decreased? If you look at the state budget, the amount of these subsidies has not decreased, but these subsidies have been cut and after that, during the budgeting process, the government has made additional decisions based on the coalition agreement, as a result of which some of this amount has been restored and has increased," Holm said.
Ligi said that such an approach is insulting to those who have lost their jobs in the public sector.
"The budget has increased, it is increasing because of inflation, it is increasing because of the fact that pensions are indexed, which is a very good thing. It's growing because of that, or it's not shrinking because we have left a number of areas out of the cuts, including the National Audit Office. /.../ But ministries had to make cuts to operating expenditure and subsidies. /.../ I can assure you that the government is still tightening its spending and people in the public sector also have to tighten their belts," the finance minister said.
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Editor: Merili Nael
Source: "aktuaalne kaamera"
