The Estonian government on Thursday approved the bill of amendments to the State Budget Act according to which the state would be allowed to draw up budgets with a temporary structural deficit and establish a four-year fiscal framework.
At the beginning of January, the Ministry of Finance submitted to the government a proposal according to which the state in the future would not compile a separate budget and budgetary strategy for each year but would instead draw up budgets spanning several years which could include a deficit of up to 0.5 percent of the GDP annually.
The four-year budget would be updated every year according to changed circumstances.
The government would submit the new four-year budget to the Riigikogu in the spring, with the Riigikogu adopting it by the end of the year. As the government already makes most of its budgetary choices in the spring, the new solution would give the Riigikogu more time to discuss the budget.
The Ministry of Finance also proposed drawing up budgets including a structural deficit of up to 0.5 percent of GDP.
According to the ministry's proposal, using the structural surplus of previous years would in the future be allowed for up to 0.5 percent of GDP. The record-keeping would start from 2014 and annual surpluses and deficits would be added together.
Editor: Aili Vahtla