Finmin approves Estonia's program for public finances for 2023-2026

  • 2023-02-14
  • BNS/TBT Staff

TALLINN - Minister of Finance Annely Akkerman has signed an order approving Estonia's program for public finances for the period 2023-2026.

The program contributes to the achievement of the goal of the performance area "Efficient State" in the budgetary strategy. An efficient public finance system is a key area in good governance, enabling the government to direct resources for priorities in the best possible way to improve the quality of living for residents, it appears from the program.

The Ministry of Finance together with the Tax and Customs Board should ensure sustainable public finances that balance out the economic cycle and enable to offer the inhabitants the necessary services as well as preserve the competitiveness of the economic environment. As part of the program, the budgetary policy and tax and customs policy will be designed to support the achievement of the state's strategic goals while ensuring that the state's resources are directed into creating the most value for its residents.

The expenses of the budget policy activities of the Ministry of Finance include the provision of technical assistance from structural funds to foundations to the tune of nearly 5.6 million euros, and the supervision of state finances includes the interest expenses paid on loans taken by the Estonian state. The volume of expenses for the supervision of state finances is increased by almost 96 million euros as a result of the increase in interest expenses.

The financial expenses of the Ministry of Finance include interest paid on loans taken by the state and interest paid on the balance of the current account of the Estonian Health Insurance Fund and the Estonian Unemployment Insurance Fund. The increase in interest costs is due to the increase in market interest rates.

The program has four main activities -- budget policy design, the goal of which is the realization of long-term goals, and the organization and supervision of state finances, the goal of which is to manage the state's cash flow, as well as the organization of state settlements, and the targeted use of external funds.

In addition to the above, the activities also include tax and customs policy design, which is necessary for the implementation of the long-term goals of the government's stable and balanced tax policy choices, and tax and customs organization to reduce dishonest economic activity.

The Ministry of Finance is responsible for achieving the goal of the public finance program, and its main cooperation partners in achieving the goal of the program and planning interventions are the Bank of Estonia, the European Commission, the International Monetary Fund (IMF), the Organization for Economic Cooperation and Development (OECD), the Estonian Chamber of Commerce and Industry, the Estonian Employers' Confederation, several professional and interest associations and other government agencies.