ERR News – Estonian Parliament confirmed the final version of the 2011 national budget with a 55- 32 vote, increasing revenue by 2 percent to 5.7 billion euros.
A priority of the budget is education, for which expenditure rose by 8 percent. Costs for defense grew to 1.9 percent of GDP.
A government mandate to reestablish pension fund payments, made optional during the recession to relieve financial burden, as well as a growing population of old-age pensioners, also increased the costs.
The extra revenue came mainly from higher VAT and social taxes. Non-tax revenue decreased by 4 percent, while support funds rose by 12 percent to 10 billion euros, which includes 1 billion euros in international grants.
Before the third budget reading, Parliament’s Finance Committee approved changes to increase the size of the budget by 10 million euros. The amendments did away with pay raises for public officials and increased monthly subsistence welfare from 64 to 77 euros. Additional funds were allocated to the embattled National Symphony Orchestra, to the National Opera and Tartu’s Vanemuise theatre, and to the island ferry service.
Of the opposition’s proposed changes, Parliament approved the Green Party’s earmarks for NGOs, including volunteer firemen and neighborhood safety organizations, as well as the Tallinn Zoo.
