Mar 11 • 11:52 UTC 🇪🇪 Estonia ERR

2.07 billion euros remained unused from last year's state budget

Last year, 2.07 billion euros of the state budget remained unused in Estonia due to various financial management issues including slow EU fund transfers.

Estonia's previous year's state budget saw an unused surplus of 2.07 billion euros, primarily attributed to the slow movement of European Union funds and questions regarding the effectiveness of activity-based budgeting. Aivar Sõerd, a member of the Riigikogu's finance committee, emphasized that this surplus highlights issues within the financial management of the budget and the reliance on EU funding to meet national objectives.

The Ministry of Finance recently reported to the finance committee about projected surpluses in the 2025 budget, which are initially estimated to reach up to 2 billion euros. According to Sõerd, this amount is divided into two major segments, with the majority, around 1.58 billion euros, consisting of revenue-dependent expenditures. This includes EU subsidies and approximately 700 million euros from emissions trading revenues, indicative of a financial strategy influenced considerably by external EU resources.

Additionally, the report noted that there was 390 million euros in budgetary surplus that had been allocated yet remained unpaid throughout the year. This figure has decreased compared to previous years, suggesting an ongoing refinement in budget management practices. Overall, the findings underline the challenges faced by Estonia in effectively utilizing its budgetary resources while navigating through EU financial frameworks.

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