Finance and the National Budget

Chapter VIII Finance and the National Budget

Article 111: Currency, Stability

The sole right to issue currency in Estonia shall rest with the Bank of Estonia. The Bank of Estonia shall organize currency circulation, and promote the stability of a good national currency.

Article 112: Rule of Law, Report to Parliament

The Bank of Estonia shall operate in accordance with the law, and shall report to the Parliament.

Article 113: Taxation

State taxes, fees, levies, penalties and compulsory insurance payments shall be determined by law.

Article 114: Control

Procedures for the control, use and command of national assets shall be determined by law.

Article 115: Budget

1. The Parliament shall adopt, as a law, a budget for all state income and expenditure for each year.

2. The Government of the Republic shall present a draft national budget to the Parliament no later than three months before the commencement of the budget year.

3. On proposal by the Government, the Parliament may adopt a supplementary budget during the budget year.

Article 116: Amendment to the National Budget

1. Proposed amendments to the national budget or to its draft, which require a decrease in income, an increase of expenditures, or a re-distribution of expenditures, as prescribed in the draft national budget, must be accompanied by the necessary financial calculations, prepared by the initiators, which indicate the sources of income to cover the proposed expenditures.

2. The Parliament may not eliminate or reduce in the national budget or its draft those expenditures, which have been prescribed by other laws.

Article 117: Procedures for the Budget

The procedures for the preparation and adoption of the budget shall be determined by law.

Article 118: Budget Year

The national budget adopted by the Parliament shall enter into force from the beginning of the budget year. If the Parliament does not adopt the national budget by the beginning of the budget year, it shall be permitted to make expenditures each month up to one-twelfth of the expenditures of the previous budget year.

Article 119: Failure to Adopt a Budget

If the Parliament has not adopted the budget within two months of the beginning of the budget year, the President of the Republic shall declare early elections for the Parliament.