Lipstok: postponing budget surplus creates concerns

  • 2012-05-29

Andres Lipstok (Photo by Mati Hiis).

TALLINN – President of the Estonian Central Bank Andres Lipstok criticized the decision of the government to postpone achieving budgetary surplus, while speaking in the Riigikogu on Tuesday, Pubic Broadcasting reports.

Lipstok said in his speech that the state has a budgetary strategy but it is not clear how much it affects specific decisions.

"For example in the budgetary strategy that was completed in spring of 2011, the aim was set to restore consolidated budget surplus in 2013. In 2012, achieving that aim has been postponed," he added.

"It creates concerns and shows that the current framework enables to change long-term aims too easily," said Lisptok.

Lipstok added that the strategy also yields no answer how to curb the surge of costs in good times and thus, rules that limit growth of spending should be enforced alongside with rules guaranteeing balance.

The government has set an aim to achieve budget surplus by 2014 latest. The finance ministry forecast in April that this could happen in 2016 only and that this year will end with 2.6 percent deficit.