Kallas said: “The sufficiently large and well-targeted Supplementary Budget, compiled quickly this spring, played an important role in this, providing the necessary support to businesses and residents hardest hit.
“This has mitigated the setbacks and created the preconditions for a rapid recovery under improved epidemiological conditions. As a result, Estonia is one of the few states in Europe to see its economy significantly exceed the previous level. the crisis, “Kallas continued, according to BNS.
Discussions will continue over the next two weeks, with the state finance bill due by the end of the month.
Talks began at lunchtime on Thursday with the new economic forecast, which indicated the economy would grow by nearly 10% in 2021.
Kaja Kallas said the strong performance obviates a need for more government stimulus lest the economy overheat.
Kallas also noted that the impact of the coronavirus crisis has been uneven
“For this reason, we must continue to provide social support to the vulnerable part of our society and maintain buffers against any possible negative development,” she said.
Government spokespersons have said that the cabinet led by Kallas will pursue a responsible financial policy, but which will also withstand any potential negative scenarios.
The forecast itself will form a large part of the basis of the state budget proposal. Once it is finalized at the end of the month, it goes to the Riigikogu for debate and vote, with a view to being enshrined in law by the end of the year.