Mar 16 • 02:55 UTC 🇪🇪 Estonia ERR

The Ministry of Finance wants to change the accounting of unused budget

The Estonian Ministry of Finance plans to modify how unused funds in the state budget are accounted for, aiming for a clearer financial picture by 2027.

The Estonian Ministry of Finance is set to revise the accounting methodology for unused funds in the state budget, as the current system has led to a misleading impression of the funds remaining unused, amounting to billions. According to officials, this revision is intended to more accurately reflect the financial landscape and reduce the reported amount of unused funds by as early as 2027. Currently, both the 2024 and 2025 state budgets show over two billion euros that remain unused, which equates to nearly ten percent of the total planned government expenditure. This substantial figure raised concerns and prompted the Ministry to revisit their accounting practices. Viola Mäemurd, head of the financial department at the Ministry, emphasized that the situation is more complex than what the numbers suggest. A significant component of the unused budget is related to the sales revenue from CO2 emissions quotas, which accounts for roughly one-third of the total unused funds. Mäemurd clarified that while the revenue from quota sales is displayed as unused in the current budget, the government had previously determined how these funds would be allocated for future projects, demonstrating the discrepancies in the current accounting representation and underscoring the need for reform.

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