Estonia’s public deficit keeps growing, but the country has to meet its obligations, and in 2027 alone Estonia will have to pay 480 million euros in interest on loans, Finance Minister Mart Vorklaev said on Thursday.
Vorklaev said the government’s off-site sitting at Vihula will entail difficult negotiations, as the state budget is in a poor shape and difficult decisions have to be made to balance revenues and expenditures, which cannot be postponed to the future.
“Public deficit keeps growing and the economy is in recession. Sound public finances and economic growth go hand in hand — the fuel for economic growth is sound public finances through a low tax burden, and a competitive economic environment. As a country, we must meet our liabilities and create the best conditions for business development,” Vorklaev wrote on social media.
“In 2027, we will pay 480 million euros in loan interests alone, which we could instead use for investments and thereby liven up the economy. Following the current trend, this amount will increase every year. However, the current course must be changed vigorously, and the new government has set out to do this,” the minister added.
(Reproduction of BNS information in mass media and other websites without written consent of BNS is prohibited.)