According to the Ministry of Finance, the 2013 state budget revenue was 7.61 billion euros or 101.7 per cent of the planned figure. Budget expenditure was 7.74 billion euros or 99.4 per cent of the planned figure. By the end of November the government sector’s budget position stayed close to balance.
When including cross-over revenue, the planned 2013 budget’s revenue was 7.48 billion and the expenditure along with the resources transferred from last year was planned at 7.78 billion euros.
The budget received a revenue of 7.61 billion euros along with pre-payments and cross-over revenue. Tax revenue along with cross-over taxes was 6.14 billion euros and non-tax income stood at 1.45 billion euros. Accrued tax revenue formed 101.4 per cent and non-tax revenue 101.7 per cent of the plan. In 2012, the state budget received 103.2 per cent of planned revenue.
The biggest revenue types were social tax, 2.07 billion euros or 100.1 per cent of the plan, and VAT, 1.55 billion euros or 100.1 per cent of the plan. Compared to the budget, the biggest over-performance came from the corporate income tax that was received in the amount of 326.6 million euros, 139.6 per cent of the planned figure. Such solid showing was ensured by the 46-per cent annual growth of private sector dividend payments the main causes of which were the increase in the entrepreneurs’ feeling of stability and the undivided profits that had accumulated over the years. One partial reason might also have been the reduced need for companies to invest. Fuel excise tax was received less than expected (92 per cent) due to the fall in declared gasoline amounts.
Compared to 2012, budget revenue was 129 million euros or 1.7 per cent larger and this is mainly related to the 6.1 per cent increase in tax revenue; corporate income tax was received 29.4 per cent, personal income tax 15.3 per cent, social tax 7.2 per cent, and VAT 3.8 per cent more than expected. As for non-tax profits, the revenue gained from CO2 quota sales increased by 9.1 million euros, environmental fees by 6.4 million euros, and pollution fees by 5.8 million euros. However, subsidies were received 194.7 million euros less and financial revenue 35.6 million euros less than before, primarily due to the partial timing of dividend payments to this year.
The expenditure in 2013 used almost all of the budgeted figure – 7.74 billion euros, 99.6 per cent of the plan. Compared to last year, expenditure rose by 3.3 per cent. Some of the biggest articles of expense were social benefits, 2.83 billion euros or 5.9 per cent more than last year. The increase in social benefits was predominantly due to the increase in pension expenditure and health insurance cost.
691 million euros or 96 per cent of the planned expenditure was directed at investments. As expected, most of the resources earmarked for investments were paid out in the second part of the year, especially in the last month. The investment volume in 2013 lost out to the previous year, mostly due to lower sales revenue from pollution quotas but also due to foreign support that had been reduced as the period ended.
By the end of 2013, 1.19 billion euros or 99 per cent of the budgeted figure had been used for the state’s labor and administration expenses. The breakdown of this figure saw 624 million euros go to labor costs and 564 million euros to administrative expenses. Comparable labor and administrative expenses grew by 45 million euros or 4 per cent when looking at 2012. The primary reason behind the cost increase was the rise of wages.
By the end of December, foreign subsidies had been paid out to the extent of 869 million euros or 91 per cent of the budget. Due to the end of the project and program period and a smaller foreign support budget, these expenses lost out to last year by 24 million euros. Along with agricultural subsidies, a total of 77 per cent of the 4.2 billion euros set for the period 2007-2013 were used. The target levels set by the European Commission for paying out structural subsidies in 2013 were reached successfully. Four out of five fund-based target levels have already reached their 2014 mark.
The volume of liquid financial assets, ie. deposits and bonds, in the state treasury reached 1.42 billion euros at the end of 2013, falling by 2.5 per cent or 37 million euros in a year. By the end of the year, the treasure reserve had 1.06 billion euros of liquid financial assets and the Stabilization Reserve Fund had 0.36 billion euros.
By the end of November, the government sector’s budgetary position had a deficit of 90 million euros (0.5 per cent of the GDP). This is in line with the Ministry of Finance’s summer economic prediction, adjusted on the basis of 2014 state budget processing decisions, according to which the government sector’s 2013 budget deficit should be 120 million euros or 0.6 per cent of the GDP.
Source: Ministry of Finance of the Republic of Estonia
Filed under: Government | Leave a comment »