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At the meeting of the Finance Committee of the Riigikogu (Parliament of Estonia) and the delegation of the International Monetary Fund (IMF) today, the state of Estonian economy and the situation of the public finances of Estonia were discussed.

Chairman of the Finance Committee Remo Holsmer gave an overview of the drafting of next year’s state budget and of tax policy. “The state will increase the basic income tax exemption to 205 euro per month in the next four years, which will first of all help improve the situation of people with low income. In order to reduce the labour related taxes, social tax will be lowered by 1 percent,” Holsmer said. “Such tax changes are the right trend also in the opinion of the IMF.”

“As the number of working-age population is decreasing, the state plans to reduce the number of employees in the public sector,” Holsmer added.  “In this aspect, too, we had the same views as the members of the IMF delegation – such reforms are planned also in other countries.” The number of public sector employees should be reduced by 750 persons.

Today’s meeting was also attended by members of the Finance Committee Urve Tiidus, Martin Helme and Aivar Sõerd.

The purpose of the visit of the IMF delegation, which will remain in Estonia until 19 October, is to get an overview of the state of Estonia’s economy and finance sector. During the visit of one and a half weeks, the representatives of the IMF met with members of the Government and of the Riigikogu, leaders and analysts from Eesti Pank (Bank of Estonia) and the Financial Supervision Authority, but also with managers of commercial banks and private companies, economic analysts and representatives of several agencies.

IMF’s annual mission will be followed by an IMF report assessing Estonia’s economic policies. The outcome of the visit will be presented by the head of the IMF delegation Christoph Klingen on Monday, 19 October at the press conference in Eesti Pank.

Photos of the meeting:

Riigikogu Press Service 

Gunnar Paal, +372 631 6351, +372 51 90 2837

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