103.4 percent of the planned revenue accrued to the state budget in 2012

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Photo: Mati Hiis / Õhtuleht

Last year 6.4 billion euros of revenue accrued to the state budget received; this is 103.4 percent of the year’s plans. Expenses were made in the amount of 6.47 billion euros i.e. 96 percent of the planned extent. The budgetary position of the public sector fluctuated around the balance point since summer, and in the end of December it was -0.2% of GDP, reported Ministry of Finance.

The budget for the year 2012 included planned revenues of 6.2 billion euros and planned expenses of 6.8 billion euros (the latter together with carry-overs from the year before). The plan-exceeding budgetary revenue was mainly caused by larger volumes of value added tax, corporate income tax and benefits, which reduced the central government’s budgetary deficit. Expenses were made in lower extent than planned, primarily in relation with more modest use of external financing.

Together with advance payments, the revenues received into the budget were 6.4 billion euros. The share of tax revenues was 4.76 billion euros and the share of non-tax revenues was 1.65 billion euros. The tax revenues received were equal to 102.3 percent and the non-tax revenues received were equal to 106.4 percent of the year’s plans. The non-tax revenues were mainly composed of foreign financing from the European Union budget, but also revenue from international emission quotas, dividends, state fees, environmental levies and revenues from sales of assets.

The largest contributing revenue types in the year 2012 were social tax of 1.93 billion euros i.e. 100.5 percent of the amount planned, value added tax of 1.49 billion euros i.e. 104 percent of the amount planned, and supports of 1.22 billion euros i.e. 105.4 percent of the amount planned in the budget.

When compared to the year 2011, additional 537.6 million euros i.e. 9.1 percent more revenues were received in the state budget, including more tax revenues by 433.2 million euros and more non-tax revenues by 118.9 million euros. Thanks to increase of consumption, 150.4 million euros more value added tax was received throughout the year and the positive development of labour market increased the revenues from social tax by 131.3 million euros. Regardless of reduction in revenue from emission quota sales, 85.5 million euros more foreign financing were still received when compared to the year before.

Expenses were made in the extent of 6.47 billion euros i.e. 95.7 percent of the planned extent in the year 2012. One year earlier, the volume of comparable expenses was 6.16 billion euros i.e. 99.5 percent of the budgetary plan. The largest expenses of the year were mostly social benefits paid in the amount of 2.65 billion euros i.e. 6.9 percent more than a year before. The increase of social benefits is primarily related to increase in pension expenses.

Investments were made throughout the year in the extent of 1.07 billion euros i.e. 13 percent more than in the year 2011. Investment volumes have grown mainly thanks to using foreign financing and revenues from quota sales more actively.

Operating expenditure of the state for the year was 1.11 billion euros i.e. 100.2 percent of the year’s plans. The increase of operating expenditure when compared to 2011 was primarily due to the defence expenditure growing by 7.3 percent. The share of personnel expenses was 587.1 million euros and the share of management expenses was 523.8 million euros.

Foreign financing for the year 2012 together with advance payments were in the amount of 893 million euros i.e. 89 percent of what was planned. This is 111.2 million euros more than a year before. Structural aid made up 615.9 million euros which is 94.5 million euros more than in the year 2011.

The amount of liquid financial assets i.e. deposits and bonds in the State Treasury at the end of the year 2012 was 1.45 billion euros. When compared to the end of 2011, the State Treasury contained 484.1 million euros more of financial assets. The amount of reserves was increased mainly by counting Töötukassa’s (Estonian Unemployment Insurance Fund) means into the Treasury reserve.

Budgetary position of the public sector in the end of December was a deficit of 0.2% of GDP. The budgetary position is better than the -2.1% of GDP planned in the budget and the -1.2% of GDP forecasted in the summer.

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