Municipalities will receive EUR 120 million in support for their budgets that has until now been funded directly by the state. For municipalities, this means greater discretion over how the money is spent. Currently, the state gives local governments money in the form of earmarked grants, meaning the money must be used exactly as the…
February tax revenues in Estonia rose by 7.2% YoY, driven by stronger energy consumption, fuel sales and economic activity, even as income tax collections dipped. The state collected EUR 1.18 billion in taxes last month, up by 7.2%, according to the Estonian Tax and Customs Board (MTA). Growth was led by value-added tax (VAT), social…
Estonian agriculture faces a severe workforce crisis if the war in Ukraine ends and Ukrainian refugees return home, local farmer Kalle Hamburg has warned in a recent television interview. Ukrainian refugees who arrived in Estonia after the start of the war made a major contribution to the local agricultural workforce. “If it were to suddenly…
The Estonian government decided on April 9 to halt a EUR 500-million procurement program for new combat vehicles, redirecting the funds toward air defense, drones and unmanned systems, Defense Minister Hanno Pevkur said. Experience from Ukraine, market conditions and military advice from the commander of the defense forces led to the decision to suspend the…
The total production of industrial enterprises decreased by 0.5% at constant prices compared with February last year, data from Statistics Estonia showed. One economist called the figures surprising. Riin Kadarik, leading analyst at Statistics Estonia, said that manufacturing production, which had increased for three months, started to decrease in February. “This was influenced by the…
The Bank of Estonia recommends that people keep a supply of cash while also preparing for the introduction of the digital euro. Although most everyday payments in Estonia are already made by card or mobile phone, this does not mean that cash has lost its importance. On the contrary, the Bank of Estonia (Eesti Pank)…
According to the Estonian Ministry of Finance forecast published on April 2, growth will be driven by stronger private consumption-supported by changes to the income tax system-along with improving external demand that will stimulate corporate investment, and increased government spending. The ministry projects real GDP to grow by 2.3% this year and by 2.5% in…