Budget, Estonia, Financial Services, Legislation

This is the first full-length budget of the government that took office in November 2016. The budget reflects a reform of the basic exemption and a healthcare reform. The healthcare sector stands to received 34 million euros more in 2018 than it did this year.

The budget also reflects an increase in the income base of municipalities. Investments of the government are aimed to support the long-term growth capability of the Estonian economy.

According to the bill endorsed by the government on Wednesday, the size of expenditures and investments set out by the budget is 10.58 billion euros and of income 10.33 billion euros. Expenditures and investments are bigger by 922 million euros or 9.5% and income bigger by 986 million euros or 10.6% than this year.

The government decided to reduce the government sector's structural budget deficit by half compared with what was planned in the national fiscal strategy, to a near-balance level of 0.25% of GDP.

According to the national budget strategy for 2018-2021 adopted by the government in spring, the four major objectives of the government are to increase the population of Estonia, to increase the welfare and cohesion of the society, to promote economic growth, and to strengthen the security of Estonia.