Forecast: Estonian state budget deficit in 2011 will amount to 1,3% of GDP

The Government of Estonia on the evening session on Tuesday agreed on a draft budget for 2011, according to which a deficit of 4 billion euros (about 256 million euros), or 1,3% of GDP, and is likely to become one of the lowest in the EU, the press office of the government.

According to the draft budget, the amount of state spending will exceed 94 billion euros (about 6 billion euros), the income of $ 90 billion kronor (about 5.76 billion euros). 2010 budget was adopted with a deficit of 5.2 billion euros (more than 330 million euros): then budget revenues amounted to 84.5 billion euros (more than 5.4 billion euros), the cost - 89.7 billion euros (about 5,7 billion euros).

Budget expenditures in 2011 could increase by almost 4 billion euros from the sale of quotas on carbon dioxide emissions and through more efficient use of financial assistance from the EU.

According to the government's plans in 2011 to 7,9% rise the cost of education. The draft budget 2011 provides the largest since 1990, the share of investment. The state plans in 2011 to invest 16 billion euros, which is 16% more than in 2010. The agreed draft budget will be sent for approval to parliament on September 27.