According to preliminary data, at the end of last year, total general government expenditures exceeded revenues by €665.7 million.

This was down from 2023 when the deficit reached 3.4 percent, and expenditures exceeded revenues by €1.3 billion.

The 2023 debt level was 19.6 percent of GDP, so there was a rise in 2024.

General government consolidated debt also grew by €1.6 billion on year to 2024.

The general government sector has three sub-sectors: Central government, local governments, and social security funds. The central government includes state budget units, foundations, and public law entities, while local governments consist of city and rural municipality governments, their subsidiaries, and foundations.

Pauline Kommer, team lead for government finance statistics at Statistics Estonia, said both the central and local governments ended 2024 in deficit. "The deficit stood at €553.9 million for central government and €152.8 million for local governments," Kommer elaborated.

In 2024, general government revenues grew by 8.5 percent, and expenditures by 4.7 percent. "Compared with 2023, the rise in expenditures was slower, but expenditures still exceeded revenues by €665.7 million. The budget deficit was 1.7 percent of GDP in 2024," Kommer noted.

Statistics Estonia reported that in 2024, deficits narrowed in the central and local government sub-sectors compared to 2023. The social security funds surplus decreased to €41 million due to faster expenditure growth.

The largest increase in spending was for social benefits. Interest expenditures rose with higher Euribor rates and more loan liabilities. Labor costs increased for both central and local governments, though more slowly than in previous years. The deficit was reduced by higher dividends and tax receipts, especially income and value-added tax.

General government consolidated debt grew by €1.6 billion in 2024.

The central government's debt rose by 19 percent to €9.1 billion by the end of 2024.

Debt securities increased by 47 percent to €5.2 billion, while long-term loan liabilities decreased by 6 percent. Foreign debt accounted for 74 percent of loan liabilities, up by 2 percent. The general government consolidated debt reached €9.3 billion, 23.6 percent of GDP, increasing by €1.6 billion with a 3.4 percent rise in the debt-to-GDP ratio.

Debt securities now account for 56 percent of general government debt, with loan liabilities at 43 percent. Short-term debt securities grew by 89 percent, long-term debt securities rose by 39 percent, and long-term loan liabilities increased by 0.6 percent.

At the end of 2024, local government debt rose by 12 percent to €1.5 billion, with 27 percent of it in foreign debt. This increase was driven by a 13 percent rise in long-term loan liabilities, while long-term debt securities decreased by 27 percent, and social security funds did not contribute to general government debt.

General government debt, or Maastricht debt, refers to liabilities in currency and deposits, debt securities, and loans. It shows how much the state has borrowed and to what extent it holds the funds of other units. The debt is calculated without interest liabilities.

More detailed information from Statistics Estonia's website is available here and here.

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