eelarveplaan

In Estonia, eelarveplaan refers to a preliminary budget plan used in public budgeting to forecast and communicate anticipated revenues, expenditures, and policy priorities for the coming financial period. It is prepared before the formal annual budget and may cover one or several future years. The plan functions as a planning and discussion tool that helps authorities test affordability, compare policy options and align resources with strategic goals.

Common elements include macroeconomic assumptions (growth, inflation), projected revenues (taxes, fees), operating expenses (personnel, goods and services), program costs, capital investments, debt service, and reserves. It may present alternative scenarios to illustrate how results could change under different economic conditions or policy choices, and it often includes performance indicators and targets.

Process and governance: the finance ministry or local finance department typically prepares the eelarveplaan in cooperation with line departments, under the supervision of the elected body. It follows the country’s budget cycle and fiscal rules and is usually published or made available for consultation. While informative, the eelarveplaan is not the legally binding budget; the final budget is adopted through the formal budget law following negotiations and amendments.

Impact: it supports strategic planning, transparency, and accountability by showing how priorities translate into financial resources. Limitations include uncertainty in forecasts and sensitivity to economic shifts, revenue collection performance, and policy changes.