On Wednesday evening, the Riigikogu finished the first reading of the €641 million supplementary budget drafted by the government to help mitigate the impacts of the coronavirus crisis.
The lion’s share of the supplementary budget, that is 87 percent, is support for the private sector and other government sector agencies. It includes remuneration support, investment support for local governments as well as other forms of support for the public and the private sector. Operational costs, which mainly concern health care, account for close to 13 percent of the total size of the budget.
The total volume of expenditures and support in the supplementary budget amounts to €641 million. Together with expected tax receipts, the negative impact on the government sector’s nominal budgetary position will be smaller at €453 million, 1.6 percent of GDP. The overall budgetary position of the government sector will be determined on April 5 when the Ministry of Finance is to publish its spring economic prognosis.
Over €150 million will be earmarked for health care for overcoming the health crisis. €52 million will be allocated for covering COVID-19-related additional costs of hospitals, ambulance services and other health care establishments. Over €20 million will go for coronavirus testing and over €30 million for the purchase of vaccines and the organization of vaccination. €26.5 million will be allocated to the Health Insurance Board for restoring the reserve required by law.
A full overview of the supplementary budget’s distribution is availablehere .
A supplementary budget was also created during thefirst wave of the coronavirus in April of 2020. It was installed specifically to deal with the arrival of the pandemic and its economic effects, but was supposed to expire at year-end2020.
Read more: ERR.EE