The government considers Estonia’s GDP to fall nearly 9 pct
03.02.2009, 17:04 The governments bases its budget cuts on
Estonian central bank’s risk scenario, according to which Estonia’s GDP will
hall 8.9 pct this year, ERR News writes.
Andrus Ansip, the Prime Minister and Ivari Padar, the Minister of Finance
shared information about 2009’s economic situation according to which the
government makes the budget cuts.
Andres Sutt, the vice president of Estonian central bank and the Ministry of
Finance’s officials gave speeches at the meeting as well.
In current
situation the government is relying on Estonian central bank’s risk analysis,
according to which Estonia’s GDP will narrow 8.9 pct this year. For that the
state gets smaller income and has to cut EEK 8 bln from its budget.
The Ministry of Finance’s rendition confirmed Estonian central bank’s economy
outlook.
Employers’ Confederation agrees that the economic downturn will likely be
more than 5 pct.
“The main purpose of the savings plan is to remain the ability to pay out
pensions and salaries to teacher and policemen at the end of the year,” Ansip
said.
He acknowledged that the risk scenarios are likely to come to life and the
decisions have to be made keeping in mind the state’s sustainability.
The government will discuss the budget again on Thursday.