The Estonian government discussed at their Tuesday cabinet meeting the possibilities of raising the income tax free minimum, especially for pensioners, so that the average pension would remain income tax free in 2014, LETA/Public Broadcasting reports.
According to initial calculations, the additional tax free rate for pensioners would increase by 18 euros a month, which would raise the income tax free income rate to 354 euros a month. The government has earlier confirmed that pensions will increase by 5.8% from 336 to 354 euros next year. Thus the average pension will remain income tax free next year.
The structurally adjusted budget position of the government sector for the next year will have a 0.7% of forecast GDP surplus while nominally it will still have a deficit of 0.4% of GDP.
The state budget expenditure will next year grow by over 400 mln euros or around 5%. The government continues discussing next year's state budget at it Thursday cabinet meeting and plans to hand over the draft state budget to the parliament on September 26.