Th, 1.06.2023
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Estonia won't achieve budget surplus before 2018

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Revenues of the Estonian state budget will not surpass expenditures until 2018 and the nominal budgetary position is estimated to have a deficit of 0.5 percent of GDP this year, 0.6 percent next year and 0.5 percent in 2017.

The Estonian ministry estimates the size of the so-called structural surplus to be 0.6 percent this year and 0.1 percent in 2016, which probably will not be consistent with estimates of the same by the European Commission, however. From 2017 onwards Estonia is going to have a structural deficit of 0.2 percent annually also according to the Finance Ministry.

Reserves are set to contract in the examined period faster than the debt burden, yet leaving aside ESFS the reserve will remain bigger than the obligations. The government sector's reserve equaled 10.4 percent of GDP at the end of 2014. Compared with the preceding year, the reserves of the central government, social insurance funds and local governments alike increased in 2014. The general government's debt burden grew to 10.6 percent of GDP. In the following years the debt burden will become smaller and is seen to equal 8.2 percent of GDP in 2018, the ministry said.

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