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Fall in general government's debt level lasts

31
Mar '08
According to preliminary data of Statistics Estonia, the Estonian general government sector surplus in 2007 was 2.8% and consolidated gross debt level was 3.4% of Gross Domestic Product (GDP). As in previous years, the general government gross debt level continued to fall last year.

In 2007, the total revenues of the general government sector consolidated budget exceeded the expenditures by 6.9 billion kroons. The central government sector surplus was 2.5% of GDP and the surplus of social security funds was 0.6% of GDP. Reached surplus in 2006, the local governments sector's consolidated budgets fell in deficit again: -0.3% of GDP.

The general government gross debt level in 2007 decreased compared to the last two years. At the same time the central government's debt level decreased 10% compared to 2006, the borrowing of the local governments sector increased by 9%, accounting for 69% of the gross debt.

After the consultations with Eurostat Statistics Estonia decided to reclassify to the general government sector several public limited companies and foundations whose economic activity by the rules of national accounts do not meet the conditions of the market producer.

The impact of the reclassification decisions are already accounted in the calculations of the general government deficits and debt levels.

General Government Sector comprises, in addition to State and Local Government institutional units, the State and Local Governments extra-budgetary funds and foundations, public-legal institutions and non-market producing public enterprises.

The General Government sector consolidated budget represents in addition to the balance of revenues and expenditures of the State and Local Governments own budgets also the balance of revenues and expenditures of the State and Local Governments extra-budgetary funds and foundations, public-legal institutions and non-market producing public enterprises budgets.

Statistical Office of Estonia


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