The government on Thursday approved Estonia's budget strategy for the years 2014-2017 as well as a stability program, which call for sticking to a prudent fiscal policy and estimates revenues in the four-year period to total 33 billion euros.
Govt's four-year budget strategy calls for continued prudence
25th April 2013, 16:32
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The strategy sets out the goal of achieving a fiscal surplus and restoring the reserves that diminished during the crisis, the government's communications office said.
The strategy expects continued growth in fiscal revenues as a result of increases in both tax receipts and external funds and envisages a 5 percent increase in expenditures in each successive year.
The spheres accounting for a bigger share in the strategy are increases in expenditures for labor market, health, and education.
Through cutting labor taxes, the government is planning to reduce the tax burden to the level where it used to be before the economic slump. The rate of income tax is to be cut to 20 percent in 2015.
Alongside the budget strategy the government approved the principles for using the European Union structural funds in 2014-2020.