General government debt continued to grow in 2024, while the budget deficit decreased
According to the preliminary data of Statistics Estonia, in 2024, the Estonian general government deficit was 1.7% and the debt level was 23.6% of the gross domestic product (GDP). At the end of last year, the total expenditures of the general government exceeded revenues by 665.7 million euros.
In Estonia, the general government sector comprises three sub-sectors: central government, local governments, and social security funds. The central government sub-sector includes state budget units, foundations, and legal entities governed by public law. The local government sub-sector includes city and rural municipality governments with their subsidiary units, and foundations.
Pauline Kommer, team lead of government finance statistics at Statistics Estonia, said that both the central government and local governments ended 2024 in deficit. “The deficit was 553.9 million euros for the central government and 152.8 million euros for local governments,” added Kommer.
In 2024, general government revenues grew by 8.5% and expenditures by 4.7%. “Compared with 2023, the increase in expenditures was slower, but general government expenditures still exceeded revenues by 665.7 million euros. The budget deficit was 1.7% of the GDP in 2024,” noted Kommer.
Last year, compared with 2023, the deficit narrowed in both the central government and local government sub-sector. The surplus of social security funds decreased due to a faster growth in expenditures and was 41 million euros in 2024.
The biggest increase occurred in expenditures on social benefits
In central government, the biggest rise in 2024 occurred in expenditures on social benefits. Compared with 2023, interest expenditure grew due the higher Euribor base interest rate and increased loan liabilities. Labour costs increased for both the central government and local governments, although the rise was slower than in previous years. The deficit was reduced by increased income from dividends and tax revenue, especially greater receipts of income and value added tax.
General government consolidated debt grew by 1.6 billion euros year on year
The general government consolidated debt (Maastricht debt) amounted to 9.3 billion euros by the end of 2024, which corresponds to 23.6% of the GDP. The debt grew by 1.6 billion euros compared with 2023. The general government debt to GDP ratio rose by 3.4% last year. The biggest increase occurred in the volume of short-term and long-term debt securities, which were up by 463 million euros (89%) and 1.2 billion euros (39%), respectively. Long-term loan liabilities did not rise significantly, as they were up by 25 million euros (0.6%). Kommer said that, for the first time, debt securities accounted for the biggest share of Estonian general government debt – 56% in 2024. The share of loan liabilities, which had previously contributed the biggest share of general government debt, was 43% in 2024.
The total debt of the central government grew by 19% year on year, amounting to 9.1 billion euros by the end of 2024. Due to the issuance of additional government bonds, the volume of debt securities in the central government grew by 47% compared with 2023 and reached 5.2 billion euros by the end of 2024. The volume of long-term loan liabilities fell by 6% year on year as a result of repayments and stood at 2.5 billion euros at the end of 2024. Foreign debt accounted for 74% of the central government’s loan liabilities, up by 2% from the year before. The central government’s liabilities towards social security funds were 1.3 billion euros, unchanged compared with 2023.
The local government consolidated debt was 1.5 billion euros at the end of 2024. It grew by 12% year on year. In the central government sub-sector, the debt was driven up by the issuance of new government bonds while loan liabilities decreased. The situation was the opposite for local governments – local government consolidated debt grew due to the 13% increase in long-term loan liabilities, while the volume of long-term debt securities continued to decrease and was down by 27% compared with 2023. Similarly to the central government, there was an increase in the share of foreign debt, which represented 27% of local government debt in 2024.
Social security funds (i.e. the Estonian Health Insurance Fund and the Estonian Unemployment Insurance Fund) did not contribute to general government debt.
Revised data on government finance statistics will be published in September 2025. Current data on the general government deficit in 2024 may be underestimated.
General government debt, or Maastricht debt, refers to the liabilities of the general government units in the following categories: currency and deposits, debt securities and loans. In other words, the general government debt shows how much the state has borrowed and to what extent it holds the funds of other units. The debt is calculated without interest liabilities.
See also the government finance section on our website. More detailed data have been published in the statistical database.
When using Statistics Estonia’s data and graphs, please indicate the source.
For further information:
Heidi Kukk
Media Relations Manager
Marketing and Dissemination Department
Statistics Estonia
Tel +372 5696 6484
press [at] stat.ee (press[at]stat[dot]ee)