Page 23 - Central & Southeast Outlook 2020

General government revenues will be boosted by tax measures, as a result of the planned increase in excise duty on cigarettes and alcohol, in tax rates on lotteries and gaming and the launch of the third and fourth phases of electronic sales registration (EET).
In 2021 the government surplus is expected to decline to 0.5% of GDP.
Government sector finances in structural terms are also expected to remain in surplus, and the government debt-to-GDP ratio to gradually fall under 30% of GDP in the next three years, due to both nominal GDP growth and a drop in nominal government debt, in line with expected developments in the balance and nominal gross domestic product.
The structural surpluses are projected to amount to around 0.3% of GDP, implying a neutral fiscal stance. The structural deficit is to reach 0.75% of GDP from 2020.
According to the Ministry of Finance, the Czech Republic should continue to meet its medium-term budgetary objective under the preventive arm of the Stability and Growth Pact.
The approved bill on the state budget for 2020 foresees total revenues of CZK1.58 trillion (€61.9bn) and total expenditures of CZK1.62 trillion. The state budget deficit is expected to amount to CZK40bn in 2020. One-off revenues from the sale of assets abroad are expected to renew the net inflow of capital in 2020, though this might stop in 2021 as one-off asset sales fade out. According to the Organisation for Economic Co-operation and Development (OECD), income from the sale of state-owned power utility CEZ’s assets in Romania is expected to contribute to the net inflow of direct investment exceeding reinvested earnings for the first time in three years.
In 2020 final consumption expenditures of households is forecast to accelerate by 2.4%. Consumption of the general government sector should slow down to 2.1%. The growth in gross fixed capital formation is likely to amount to 1.4%.
3.2 ​Budget - Estonia
The Estonian parliament approved the 2020 budget bill in December. The bill assumes revenues of €11.8bn, an increase of 6.9% versus 2019. The state’s expenses are set to come in at €11.6bn, a growth of 2.1% over 2019.
“The draft budget for 2020 is in nominal balance and moving structurally towards a balance, with a structural deficit of 0.7 per cent of GDP,” according to the government.
The government sector's debt burden is to decrease in both euros as well as a
23​ CESE Outlook 2020​ ​ ​www.intellinews.com