Public investment is a priority spending area, and Estonia is seeking to strengthen the efficiency and effectiveness of its capital expenditure from an already high level. Estonia’s general government capital expenditure has been higher than that of its neighboring comparators,1 EU countries or the average advanced country, at usually well above 5 percent of GDP. It is planned to continue at that level in the medium-term despite an expected decline of external grants from the EU. Thus, the level of public capital stock has been increasing as well as closing a gap to the comparator countries.
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