In the assessment of the Fiscal Council the structural surplus in the general government budget for 2013 was in line with the expectations of the budget strategy for 2013-2016. Calculations by the Ministry of Finance put the structural budget surplus for the general government at 0.4% of GDP for 2013. Most estimates of the fiscal position of the Estonian general government from other institutions using other methods also indicate a small structural surplus.

It is the opinion of the Fiscal Council however, that the GDP growth forecast for the coming years does not justify the maintenance of a budget deficit. When preparing the state budget for next year this autumn, the government should make every effort to ensure that the nominal balance of the budget is improved.

The framework restricting fiscal policy and the medium-term goals should be understandable to the public and there should be good grounds for setting them and changing them. The Fiscal Council finds that the weakening of medium-term goals has not been sufficiently clearly explained to the public in recent years.

The opinion of the Fiscal Council and a cover letter explaining the background to it can be found here:
The opinion of the Fiscal Council on the achievement of the target for the general government structural fiscal position in 2013 (.pdf)

For further information:
Raul Eamets
Chairman of Fiscal Council
+372 514 0082, raul.eamets@ut.ee

Background Information

The Fiscal Council is an independent advisory body set up this year under the updated State Budget Act, and its main role is to observe compliance with the budget rules.

By law, the Fiscal Council must issue its opinion on the general government structural budget position after the government's consolidated report is prepared.