Once a year, European Union countries are required to submit stability and convergence programs to the European Commission and the Council of the European Union, outlining government policy choices.This time, the government plans to send budget plans to Europe that do not reflect reality.
In the stability program still pending government approval, there is a plan to present next year’s budget deficit as 3 percent of GDP, which is the limit set by the Stability and Growth Pact.
In reality, the Ministry of Finance is using data from its spring economic forecast, where it hopes to reduce an otherwise projected deficit of 5.3 percent with measures that have not been adopted and from which many politicians have already backed away.
In addition to tax increases that are already in process and approved, the Ministry of Finance has created a table of possible new measures that could reduce the budget deficit – currently estimated at €2.22 billion without counting investments – to a more manageable one billion euros.
Read more: ERR.EE
