General Government expenditures decreased

According to the revised data, at the end of 2009 the total expenditures of the general government sector budget exceeded the revenues by 3.8 billion kroons. While in 2008 most of the consolidated budget deficit resulted from the central government’s deficit (6.1 billion kroons), the share of all subsectors in consolidated deficit in 2009 was rather coequal — the central government’s deficit was 1.3 billion kroons, the local governments sector’s deficit was 1 billion kroons and the deficit of the social security funds was 1.5 billion kroons.

There were no substantial revisions in the general government debt indicator compared to the preliminary figure of 2009 published in spring. By the end of 2009 the general government gross debt level (Maastricht debt) amounted to 15.5 billion kroons, growing by a third compared to the previous year. The local governments’ debt amounting to 8.7 billion kroons had the biggest share. Debt level of central government increased nearly twice compared to the previous year, amounting up to 7.7 billion kroons.

The 1st half of 2010 compared to the 1st half of the previous year

In the 2nd quarter of 2010, the general government’s total expenditures exceeded the revenues by 36.5 million kroons and as a result of the two quarters the general government sector deficit was 4.2 billion kroons in the end of the 1st half of 2010. That is over two times smaller than in the 1st half of 2009. In the 2nd quarter this year the total expenditures of general government decreased by 13% and the compensation of employees by 6.5%.

The total income was 0.4% smaller than in the same period of 2009 but 181 million kroons higher while comparing the 1st half years. In most of the income classes the receipts remained lower than in the 1st half of the 2009; the only considerable increase, arising from the unemployment insurance payments, was in the revenues of the Unemployment Insurance Fund. The incomings from the fines and the delay allowances on taxes were also bigger.

By the end of the 2nd quarter of 2010 the general government gross debt level decreased by 496 million kroons and both, central and local governments’ sectors, had their share in it. The decrease of the debt level was induced by the repayments of the loans, both domestic and foreign, and being cautious in taking new debt liabilities at the same time. Also, there were changes in the structure of the foreign and domestic debt in the 2nd quarter — about 1.2 billion kroons of foreign debt was reclassified to domestic due to the sales and purchase transactions of bonds.

Eurostat publishes the debt and deficit levels of the Member States on 22 October.

In Estonia the General Government sector comprises three sub-sectors: 1) central government (State budget units and extra-budgetary funds, foundations, public-legal institutions); 2) local government (city and commune administrations with their subsidiary units, foundations); 3) social security funds (Health Insurance Fund, Unemployment Insurance Fund).