Investor Presentaiton
23
Crisis-related spending priorities are met
Energy security, defence and social needs of Estonians and refugees receive attention
• Fiscal buffers built over a decade of fiscal prudence have allowed the
government to approve exceptional supplementary budgets which
have cushioned the impact of the Covid-19 and Ukraine crises in
2020-22
• The new government coalition has approved several tax increases
and will review expenditures to reduce estimated budget deficits in
the coming years to ensure sustainability of public finances
.
Exceptional spending related to energy security, defence, and social
protection (incl. Ukrainian refugees) remain priorities from 2023
• The Recovery and Resilience Plan (including REPowerEU), will
contribute EUR 567m to reforms and investments in energy security
and renewables up to 2026
Crises-related additional budgetary costs (% of GDP)
1%
0%
-1%
-2%
-3%
-4%
-5%
2018
2019
2020
■ Other
Energy measures
2021 2022 2023f
■2020 tax revenue shortfall
Defence measures
2024f
2025f
Covid measures
■Costs of refugees
2026f
Composition of expenditures by function in 2022 (% of GDP)
General government services
Source: Ministry of Finance of Estonia
Limited supplementary budget expenditures
Social protection
31%
9%
16,000
National defence
15.3%
6%
14,000
Public order and
security
5%
Education
14%
Economy
12%
Environmental
protection
2%
12,000
10,000
Housing and
Leasure time,
culture and religion
5%
Healthcare
15%
utilities
1%
Source: Ministry of Finance of Estonia
2020
■Supplementary budget (EURM)
◆ Supplementary budget (% of total budget)
Source: Ministry of Finance of Estonia
20%
15%
10%
7.8%
6.0%
5%
0%
2021
2022
Initial state budget (EURM)
REPUBLIC OF ESTONIA
MINISTRY OF FINANCEView entire presentation