46 pct of budget revenue was received by 30.06

The Ministry of Finance informs that by the end of June the budget revenue amounted to 39.4 billion kroons (i.e. 46.3% of the total budget ).

The expenditure incurred in the six months amounted to 43 billion kroons, which is 47.1% of planned expenditure.The 2009 state budget has been planned with a deficit and therefore current expenditure exceeds current revenue. Shortfall of the tax revenue, activities of local governments and public institutions (that have an impact on the state fiscal position) and negative developments in the labour market remain the biggest risks related to the budget. 39.4 billion kroons accrued to the state budget in the first half of the year, which is 46,3% of the total budget revenue, and it is 5.9% less than last year. 7.1 billion kroons was received in June. Tax revenue amounted to 5.5 billion and non-tax revenue 1.5 billion kroons of the revenue received.

The tax revenue received in the budget during six months amounts to 29.6 billion kroons, i.e. 46.6% of the total budget revenue. Tax payments have remained below the estimated levels, but the tax receipts have also been affected by personal income tax refunds, which exceeded the amount of refunds paid in the previous year by approximately one billion kroons. The situation in the labour market continues to have a negative impact on social tax revenue. The drop in consumption has also an impact on excise and VAT revenue.

Non-tax revenue received by the end of June amounted to 9.8 billion kroons, which is 45.3% of the total amount planned in the state budget. 1.5 billion kroons was received in June. Non-tax revenue increased by 1.3 billion kroons compared to the first six months of 2008. Revenue shortfall from sale of assets and property, state fees and fines are the biggest risks in terms of non-tax revenue. Grants comprise the majority of the non-tax revenue earned in the six months with 6.7 billion kroons, which is 46.9% of the amount planned in the budget. Foreign grants comprise 5.7 billion kroons of the total and the majority of it was received on account of the structural funds prescribed for the development of the living environment and the economic environment, and agricultural support. 826 million kroons was received from sales of goods and services, which is 47.2% of the amount planned in the budget. State fees comprise the majority of it, with 386.4 million kroons. 276.2 million kroons was earned from sales of tangible and intangible fixed assets and 1.3 billion kroons on assets. Other revenue, earned by the end of June, amounted to 713.5 million kroons, which is 77.9% of the planned revenue. Pollution charges and fines represented the majority of other revenue earned, with 390.5 million kroons and 140.4 million kroons respectively.
Budget expenditure incurred in the first six months of the year amounted to 43 billion kroons and amounted to 47.1% of the expenditure planned in the budget. The expenditure paid out of the state budget in June amounted to 7.4 billion kroons and social expenditure comprised the majority thereof. The expenditure incurred from the budget amounted to 1.2 billion kroons more that in the same period last year, mainly due to the sudden increase in payouts of external funds. The funds for the first six months were used according to plan, but the biggest risks are still associated with the successful use of foreign aid and the increase in the funds required for aid awards. The appropriations paid out of the state budget by the end of June amount to 33.7 billion kroons, which is 48.6% of the total payouts of appropriations planned for the year. Appropriations mainly cover social expenditure, with family support and social welfare payouts have increased the most. 5.6 billion kroons was paid out appropriations in June. State agencies had paid out 7.9 billion kroons in operating expenses as of the end of June, which is 49.3% of the amount planned in the budget. Payouts of operating expenses have decreased by 441.5 million kroons in comparison with the same period in 2008. 1.5 billion kroons was paid out in operating expenses in June. 2.6 billion kroons or 30.5% of the funds planned in the state budget were used for investment and investment support in the first six months of the year. The investments and investment support paid out in June amounted to 414.1 million kroons. Investment support for rural life and fishery of 40.1 million kroons, the Emajõgi and Võhandu water project of 24.2 million kroons and Western Islands water project of 18.2 million kroons represented the biggest investments and investment support. Payouts made on account of external funds in the six months amounted to four billion kroons, which comprises 30.9% of the amount planned in the state budget. The payouts made in June amounted to 754.8 million kroons. 2.1 billion kroons more has been paid out in external funds in 2009 compared to 2008. The amendments made with the second supplementary budget passed by the Riigikogu will have an impact on the percentages of execution of the budget for June.

Source: Estonian Ministry of Finanace

Average value of real estate transaction 42 000 EUR

According to Statistics Estonia, in the 2nd quarter of 2009, 6,500 purchase-sale transactions of real estate were carried out. Compared to the 2nd quarter 2008 the number of purchase-sale transactions decreased by one third, and compared to the previous quarter increased by one fifth.

The total value of purchase-sale transactions was 4.2 billion kroons in the 2nd quarter. Compared to the 2nd quarter of the previous year, the total value of transactions decreased by 58%, and compared to the previous quarter — by one tenth. During the two first quarters of this year, the value of purchase-sale transactions was 8.9 billion kroons. This is two times less compared with the first half of the previous year and 39% less compared with the second half of the previous year.

In the 2nd quarter, the average value of a purchase-sale transaction was 653,400 kroons or by 36% less than in the 2nd quarter of 2008. Compared to the previous quarter the average value of purchase-sale transactions decreased by a fourth. The average value of unimproved registered immovables decreased the most (41%). Decrease in the average value of the transfer of dwellings slowed down from 23% to 8% compared with the previous quarter.

In the 2nd quarter, 46% of the total number of purchase-sale contracts were concluded for the transfer of dwellings, 34% for unimproved registered immovables, 12% for residential buildings and 8% for non-residential buildings. During the year, the percentage of unimproved registered immovables increased by almost a tenth on account of the decrease in the number of transactions with dwellings.

38% of the purchase-sale transactions were notarised with the objects located in Tallinn and Harju county. The value of these transactions accounted for two thirds of the total value of purchase-sale transactions.

Trend of the notarised purchase-sale transactions, 1st quarter 1999 – 2nd quarter 2009


Since 2008 the data of the Estonian Land Board serve as a basis for the production of official statistics on the purchase-sale transactions of real estate. In previous years Statistics Estonia collected the data from notaries.

Source: Statistics Estonia

GDP decreased by 16.6 pct

According to Statistics Estonia, by flash estimates, the gross domestic product (GDP) of Estonia decreased by 16.6% in Estonia in the 2nd quarter of 2009 compared to the same quarter in the previous year.

In the 1st quarter of the current year GDP decreased by 15.1%.

Compared to the 1st quarter, the seasonally and working-day adjusted GDP decreased by 3.7% in the 2nd quarter. The decrease decelerated compared to the previous quarter — in the 1st quarter GDP decreased by 6.1% compared to the previous quarter.

The value added decreased in the majority of economic activities. Decrease in the value added of manufacturing, construction and wholesale trade influenced the decrease of GDP the most.

In manufacturing, the value added decreased in all economic activities due to a continually small domestic demand and by virtue of that, the decrease in orders. Exports of the manufacturing output decreased as well due to a weak external demand.

A fast decrease in the value added of financial intermediation had a remarkable impact on the GDP. This was in particular influenced by the decrease in the financial and interest income and fees and commissions’ income of the enterprises operating in this economic activity.

Real growth rate of the GDP, 1st quarter 2004 – 2nd quarter 2009


The first estimate of the GDP for the 2nd quarter of 2009 calculated in accordance with the internationally recognized methodology will be published by Statistics Estonia on 8 September. By virtue of the European Union requirements, Statistics Estonia revises calculations of the actual and imputed rent of dwellings over the whole time series since 1995 and reclassifies a certain number of units between the non-financial corporations sector and general government sector since 2002. In addition, Statistics Estonia revises the national accounts for 2005–2008 based on the supply and use tables and annual reports of enterprises. Together with the revision of the year 2008, data for the 1st quarter of 2009 will also be updated. All the above referred revised time series will be published in the Statistical Database of Statistics Estonia on 8 September.

Source: Statistics Estonia