Government supplementary budget negotiations held
Revenue estimates brought down
The Government reached agreement today on the content of the second supplementary budget for 2001. With economic prospects on the decline, tax revenue estimates were lowered by EUR 760 million in net terms. Receipts from income taxes are expected to decrease the most, by about EUR 590 million. Over EUR 420 million of this sum is accounted for by a fall in corporate income taxes as business profitability is deteriorating. In addition, tax accrual data to date indicates that VAT is likely to yield EUR 210 million less than previously forecast.
Proposed increases and deductions of appropriations cancel out allowing total appropriations stay unchanged. The Government proposes that central government debt amortisation be reduced by EUR 810 million. Central government debt is set to fall by EUR 3 billion in 2001. The Government also asks for a permission to give up the proprietorship of Avena Ltd.
Budgetary revenue estimates, appropriations and balance, EUR million
2000 |
2001 |
2002 |
|
Final |
Supplementary Budget II |
Budget + Supplementary Budgets I and II |
|
Total estimated revenue |
37 756 |
-810 |
36 817 |
- Income and wealth taxes |
13 788 |
-589 |
12 852 |
- VAT |
9 470 |
-210 |
9 805 |
- Other revenue |
14 498 |
-11 |
13 369 |
- Use of final statement surplus |
790 |
||
Net debt redemption and debt management |
5 519 |
-811 |
3 051 |
- Net debt redemption |
-811 |
2 726 |
For further information:
Mr. Timo Viherkenttä, Budget Director, tel. +358 9 160 3105
Mr. Hannu Mäkinen, Deputy Budget Director, tel. +358 9 160 3036