The government approved the state budget draft for 2014. Next year’s budget expenditure will be 8.06 billion euros and the expected revenue will be 8 billion euros. The structurally adjusted budget position will increase to 0.7 per cent of GDP by 2014.
State budget draft for 2014:
Guarantees a stable economic environment
- The current budgetary policy will continue.
- The principles of taxation policy will remain the same – the tax system will remain stable, simple and transparent with as few exceptions as possible.
The aim is to reduce the tax revenue that remains uncollected and thereby improve the competitive environment.
- The state will continue investing in large amounts. Total investments in the next year will amount ca. 18 per cent of all investments in Estonia.
- Focussed choices will be made on the distribution of enterprise support: it will be granted to companies with good potential for growth.
Improves people’s welfare and standard of living
- The payroll in the areas of government will increase by 5.1 per cent, which will ensure that wages in the public sector remain competitive.
- The average pension will increase by 5.8 per cent and remain tax-exempt.
Estonia is one of the few EU Member States where pensions are growing fast. This is possible because the increases in wages have been faster than expected and unemployment has decreased.
Guarantees the sustainability of public finance
- Pursuant to the objective established in the state budget strategy, the structurally adjusted budget of the government sector will remain in surplus in the next year (0.7 per cent of projected GDP).
Nominally, the budget of the government sector is in deficit by 0.4 per cent of GDP.
Structural surplus indicates that there are no sustainability problems in the budget and the nominal deficit in the coming years is a result of temporary factors.
Source: Estonian Ministry of Finance
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