Estonia: State budget deficit to be smaller than forecast in 2023

Estonia’s state budget deficit is likely to be smaller than forecast in 2023, the Ministry of Finance announced, ERR reports. In the first five months of 2023, budget revenues increased more than expected due to the rapid growth of wages and rise in prices. Tax revenue was 10% higher than a year earlier. At the end of May 2023, local government budgets showed a surplus of EUR 113mn, while the combined surplus of the Unemployment Insurance Fund (Töötukassa) and the Health Insurance Fund (Tervisekassa) amounted to EUR 57mn. At the same time, the central government’s budget showed a deficit of EUR 557mn, which was EUR 162mn more than a year earlier. The government has projected that the state budget deficit will be 4.3% of GDP in 2023.