General Government budget was in surplus again

At the end of 2011, the total revenues of the general government surmounted the expenditures, accounted as the Maastricht deficit criteria, by 163.9 million euros. The volume of the revenues as well as expenditures increased compared to 2010. The total revenues increased to 6.3 billion euros (7%) and the total expenditures to 6.1 billion euros (5%). Only the revenue from property income decreased mainly due to reducing of the dividends paid to the state.

In 2011 compared to the previous year, the total tax revenues received by general government increased by 345.1 million euros, bringing in 5.2 billion euros. Taxes on products and import taxes accounted for the biggest share of tax revenues (42%), totalling 2.2 billion euros or 11% more than a year earlier. The receipt from the taxes on properties and on income was one billion euros (8% more than a year ago), accounting for one fifth of the total revenues. The revenue from the social security contributions was 2 billion euros or 3% more than in the previous year.

The expenditures of central government exceeded the revenues again in 2011, although the deficit was only 0.7 million euros. Compared to the previous year, the volume of the central government loans increased by 5% while the volume of the securities other than shares decreased by 4%. Loans comprise the lion's share of central government’s debt (83%). 55% of the central government’s loans were financed by the foreign capital.

In local governments’ sector the revenues amounted to 16.9 million euros more than expenditures made. The overall debt level of local governments remained on the same level as a year earlier, but the volume of the loans decreased by 4% and the volume of the securities other than shares, accounting for three quarters of the local governments’ debt portfolio, increased by 8%.

The most important role in achieving the surplus of general government consolidated budget was played by the social security funds, which in the previous year raised the surplus to 147.7 million euros (the growth 79%). The debt of the social security funds is continuously very small compared to other sectors and it even decreased compared to a year earlier. The general government consolidated debt (Maastricht debt) was 965 million euros at the end of 2011, increasing 1% compared to the previous year.

Surplus/deficit and debt level of the general government in Estonia, 1995–2011

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 governments (city and commune administrations with their subsidiary units, foundations); 3) social security funds (Health Insurance Fund, Unemployment Insurance Fund).

Eurostat is going to publish the data on the preliminary debt and deficit levels of the Member States on 23 April.