The government will begin talks with the state budget on Tuesday

 Tuesday's government cabinet meeting will begin with the 2018 state budget negotiations. Firstly, the Ministry of Finance introduces a renewed economic forecast to government members, which gives an overview of the outlook for public finances and the latest economic developments. The government will submit a draft state budget to the Riigikogu at the end of September.


"In the course of the state budget strategy, we put in place four years of the country's major goals and financial plans to achieve them. The government will now launch a budget debate for the first time, based on the objectives of this coalition. The four major goals of the Government are to increase the population of Estonia, increase social well-being and coherence, promote economic growth and strengthen Estonia's security. The 2018 budget reflects for the first time the tax-exempt income reform and reform of health care financing, as well as an increase in the revenue base of local governments, "said Prime Minister Jüri Ratas. "The government will continue to work in the name of a more united, stronger and more equitable Estonia. By the end of the month, we have set up a more precise plan for the next year. "

Among other things, the government decided, among other things, to finance health care for a total of EUR 215 million over four years, to allocate more than EUR 200 million to the Rail Baltic and to keep defense costs above 2 per cent of gross domestic product at the level of the national fiscal strategy. The government has also agreed on a high level of investment: the government sector will invest more than € 1.3 billion a year in the next three years. Of this, a total of EUR 315 million is a strategic investment program. 

The government's goal is a sustainable fiscal policy that takes into account the balanced development of the economy. The debt burden of the general government in Estonia is the lowest in the European Union and will continue to do so.

The government is proceeding from the drafting of the state budget on the basis of a new economic forecast of the Ministry of Finance, which will be presented to journalists on Wednesday at 13.30 at a press conference in the Ministry's Commonwealth Office (Great America 1, Tallinn).

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