The government picked up the issue of the state budget strategy for 2020-2023 for the first time at its Thursday meeting. The document forms the basis of Estonia's budget-related policies and decisions and outlines the long-term spending aims and purposes of the state.
Discussions started with an overview by the Ministry of Finance of the spring economic forecast, along with the basic considerations to be applied in the new strategy. According to Prime Minister Jüri Ratas (Centre), the aim has to be to improve the lives of all Estonians while taking into account the development of different regions and areas, "from our big cities to our small islands."
The development of a smart economy has priority and will play a role across different sectors, Ratas said. Putting together the new strategy, the coalition of the Centre Party, Conservative People's Party of Estonia (EKRE) and Isamaa will work based on the five principles it has outlined for itself: a family-friendly Estonia, a cohesive society, a knowledge-based economy, efficient government and a "free and defended" state.
The aim of the state's budget policy is to support balanced economic growth, the Government Office wrote in a press release earlier this week. In practice, this means that in years of increased growth, Estonia's budget policy aims to keep the economy from overheating, while in more difficult years the state can support the economy through increased investment.
Editor: Dario Cavegn