2020 state budget expenditures to increase by quarter billion
In the 2020 state budget bill to be presented to the Riigikogu by the Estonian government on Wednesday, expenditures are to increase approximately €240 million and and revenues by approximately €760 million compared with 2019 projected figures.
The total volume of expenditures in next year's state budget is €11.6 billion, €1.05 billion of which is foreign aid. Revenues are expected to total €11.8 billion.
The 2020 state budget will have a structural deficit of 0.7 percent of expected GDP, decreasing to 0.2 percent in 2021.
The budget is expected to reach a structural balance in 2022. Nominally, the government sector budget will be in a surplus in 2021 and 2022.
Tax revenues are expected to total €10 billion in 2020, 5.3 percent or €505 million more than this year.
The central government will allocate €1.3 billion in tax revenues to local governments, which is €83 million, or 6.8 percent, more than this year.
For the next two years, the tax burden will remain stable at 33.2 percent of GDP, and is forecast to decrease to 32.7 percent of GDP in 2022. The government is expecting a decrease in the tax burden, as rapid wage increases are expected to slow, and modest growth is expected in the consumption of excise goods.
While the government debt-to-GDP ratio is to total 8.8 percent of GDP in 2019, this is projected to decrease to 8 percent in 2020. In absolute numbers, the government debt will decrease from €2.4 billion in 2019 to €2.3 billion in 2020.
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Editor: Aili Vahtla
