Estonian Minister of finance Jürgen Ligi predicted on Thursday on the basis of the collected tax revenue that Estonia’s economy would be growing by 1% in 2010, writes LETA/Äripäev.ee.
He also estimated that the year 2010 tax revenue will be by 1.5 billion kroons higher than planned in the State budget.
“The real economic growth of 1% will become a reality, at the same time the inflation growth will be slightly higher than expected,” said the minister, adding that the GDP’s nominal value will be higher than the State predicted as well.
The projected State budget deficit level of 2.5% of GDP was already reached in the first five months, but Ligi asserted that such a pace complies with the ministry’s projections. “This was due to the asymmetric collection of revenue – the excise tax revenue on tobacco is collected in a highly unstable manner and in the beginning of the year there was a major shortfall in the income tax revenue,” said the minister of finance. “We believe that during the second half of the year, the revenue and spending will be balanced,” he added.