Estonia wants to switch to four-year budget periods

Parliament, Tallinn, Estonia (Dennis Jarvis, CC BY-SA)

Hungarian PMI falls in December while Polish hits 17-month high

Latvia’s budget revenues projected at over EUR8bn

Estonia

The Ministry of Finance submitted a proposal to the government according to which the state would not prepare a separate budget for each year. Instead it would prepare four-year budgets including a potential deficit of up to 0.5 per cent of GDP per year.

The four-year strategy would be updated annually by adding another year, and the first four-year budget should be drawn up in 2019 for the 2020 to 2023 period.

The Estonia’s government would submit the new four-year budget to the Riigikogu, Estonian parliament, in the spring 2017, and the latter would adopt it by the end of the year.

According to the Estonian press agency ERR the change would allow the government to run its own budget more independently.

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Hungary

Hungary’s seasonally-adjusted Purchasing Managers Index (PMI) fell to 52.2 points in December 2016 from a revised 56.3 points in November 2016.

In December among the sub-indices that comprise the PMI, the production volume index fell from November but stayed above the 50 mark for the twelfth month in a row. The new orders index fell more rapidly but was still above 50 points. Delivery times were longer than in November, the sub-index was below 50. Purchased stocks fell in December.

An index value above 50 shows expansion in the manufacturing sector, while a value under 50 signals contraction.

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Poland

The Polish Radio reports that Poland’s Purchasing Managers’ Index (PMI) jumped to 54.3 points in December, the highest result since July 2015.

According to the financial website bankier.pl, experts were expecting a slower PMI growth of 52.2 in December, rising from the 51.9 noted in November.

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Latvia

The budget’s expenditures are projected at EUR8.4bn. As compared to the 2016 budget, revenues are expected to grow by EUR664m and expenditures by EUR680m in 2017.

The budget was passed by the Latvia’s parliament in December. Latvian press agency Leta quotes Prime Minister Maris Kucinskis saying “This budget is not for loud metaphors, it is based on the abilities of the coalition partners and their strength to achieve compromises, the wish to make the first steps towards radical reforms in many areas. We are going where we have never been. Let’s make that first step together!”

In 2017 Latvia plans to increase healthcare expenditures, as well as defense, education and social benefits ones. Budget revenues will be increased by gradually raising excise tax on cigars, cigarillos, cigarettes and tobacco, and on nature resources, including drinking water.

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What’s up in indexes

BUX (of Budapest) – increased from 32003.05 index points Friday, December 30th to 32099.05 index points Monday, January 2nd. So it’s up 0.30 per cent d/d. From year-end it’s up 0.79 per cent.

The Bucharest Stock Exchange was closed Monday, January 2nd. On Friday, December 30th BET closed at 7085.05 index points. From year-end it’s up 1.19 per cent.

PX (of Prague) was up 0.26 per cent – increasing from 921.61 index points Friday, December 30th to 924.04 index points Monday, January 2nd.  From year-end it’s up 0.49 per cent.

WIG20 (of Warsaw) was up 0.45 per cent d/d and up 0.53 per cent from year-end. It increased from 1947.92 index points Friday, December 30th to 1956.72 index points Monday, January 2nd.

OMXT (of Tallinn) was up 0.60 per cent d/d and up 0.85 per cent from year-end. It increased from 1075.50 index points Friday, December 30th to 1081.93 index points Monday, January 2nd.

OMXR (of Riga) dropped by 0.07 per cent – falling from 733.77 index points Friday, December 30th to 733.22 index points Monday, January 2nd. From year-end it’s up 0.04 per cent from year-end.  

OMXV (of Vilnius) was up 0.58 d/d and up 0.73 per cent from year-end. It increased from 558.50 index points Friday, December 30th to 561.73 index points Monday, January 2nd.

SAX (of Bratislava) closed at 318.57 index points Monday, January 2nd. So it’s the same result as Friday’s December 30th. From year-end it’s up 0.74 per cent from year-end.

The bourse of Sofia was closed Monday, January 2nd. On Friday, December 30th SOFIX closed at 586.43 index points. From year-end it’s up 27.24 per cent.

The bourse of Kyiv was closed Friday, December 30th and Monday, January 2nd. UX closed at 795.84 index points Thursday, December 29th. From year-end it’s up 16.04 per cent.

CROBEX (of Zagreb) dropped by 0.14 per cent – falling from 1994.84 index points Friday, December 30th to 1991.97 index points Monday, January 2nd. From year-end it dropped by 0.14 per cent.

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