09/09/2010 11:43
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Estonian budget surplus widened in January

THIS PUBLICATION HAS 7 COMMENTS
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I am not a native english speaker. Can a surplus widen? I thought it could only grow and a budget gap would widen. answer
~A tourist [15.02.2010, 19:05]
I'm not a native speaker either, but I think you're right..
~Kristjan [15.02.2010, 19:09]
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what a miracle??? really I am amazed !

when you don't spend money (cutting budget in everywhere) is for sure that you should be able to have more money!

and now the want euro.. hahahaha... just look at the situation with greece... you will get your answer! answer
~piummm [15.02.2010, 19:54]
The Greece-example is not that good. Greece spend and spend, have a debt burden that is extraordinary high (in contrast to Estonia). It is not the currency itself that brought Greece in such a situation but the behavior of the government in Athens.
~A tourist [15.02.2010, 20:08]
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yes, you are right! I just try to say, that this crisis might affect the estonian "wish" to get the euro zone, because from now the german and the french might start thinking more than 3 times before to accept a new member into the club, specially estonia; a country without a strong (or acceptable) economy... I don't think that they would be happy if estonia start to have problems in further years.. answer
~piummmmm [15.02.2010, 20:32]
Oh dear. Not an "acceptable" economy, eh. That IS bad news..

But you're right in that the recession influenced the drive for the euro. Inflation criterion. ;)
~Kristjan [15.02.2010, 21:00]
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A bit misleading:
"Revenue exceeded spending by 1.8 billion kroons on a cash basis"

I think they are referring to cash-basis accounting. So in December, shops stocked up on alcohol and tobacco before the new taxes take effect in January. However, the taxes collected for December aren't paid to the government until January (generally on the 10th).

But... don't governments use accrual and not cash-basis accounting? So this revenue is actually booked as part of December's revenue?

In some ways, this may actually be a bad thing. Retailers have stockpiled a 6-12 month supply of these goods, so the government won't be receiving much tax money for those goods over the coming months as it was already paid for December. answer
~ameeriklane [16.02.2010, 12:46]
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