Estonia - Public finance

The new government exercises fiscal responsibility characterized by a strictly balanced budget. No transfers or preferential credits are given to public enterprises, and governmental borrowing from the central bank is forbidden. In January 1996 Estonia instituted a centralized treasury system for managing the government's budget.

The US Central Intelligence Agency (CIA) estimates that in 2002 Estonia's central government took in revenues of approximately $1.9 billion and had expenditures of $1.9 billion. External debt totaled $3.3 billion.

The following table shows an itemized breakdown of government revenues and expenditures. The percentages were calculated from data reported by the International Monetary Fund. The dollar amounts (millions) are based on the CIA estimates provided above.


Tax revenue 88.0% 1,663
Non-tax revenue 8.8% 167
Capital revenue 1.1% 21
Grants 2.1% 39
EXPENDITURES 100.0% 1,890
General public services 7.8% 147
Defense 5.0% 94
Public order and safety 7.2% 135
Education 7.3% 138
Health 16.3% 308
Social security 31.4% 594
Recreation, cultural, and religious affairs 4.0% 75
Economic affairs and services 9.5% 179
Interest payments 0.6% 11
Other expenditures 11.1% 210

User Contributions:

Comment about this article, ask questions, or add new information about this topic: