Second Reading of the Draft State Supplementary Budget Act for 2024 (456 SE)
Session: 15th Riigikogu, 3rd sitting, additional plenary session
Date: 2024-06-14 13:08
Total Speeches: 67
Membership: 15
Agenda Duration: 1h 8m
AI Summaries: 67/67 Speeches (100.0%)
Analysis: Structured Analysis
Politicians Speaking Time
Politicians
Analysis
Summary
The current agenda item is the second reading of Draft Law No. 456 on the 2024 Supplementary Budget, initiated by the Government of the Republic. The aim of the draft law is to improve the state's budgetary position by reducing the deficit to the limit set by the European Union budget rules (below 3% of GDP). The total cost of the measures being taken is 183 million euros, of which approximately 173 million euros is planned for improving the budgetary position—nearly 115 million euros of this amount comes from savings measures and 68 million euros from revenue measures. Revenues will increase by 42 million euros, while expenditures and investments will decrease by 104 million and 23 million, respectively. Revenue measures include increasing dividends and additional income tax collection. The second reading is underway, and the discussion included, among other things, amendments submitted by the Isamaa parliamentary group. Furthermore, the Finance Committee made a clarifying amendment to the title by adding the word “state” to the end of the title, and disregarded some of the proposals regarding the opinion submitted by the Isamaa parliamentary group because their exact wordings were not consistent with the text of the draft law.
In summary, the agenda has included discussion of the technical clarification of the draft law, the impact of budget studies and final prices, and the committee has made decisions regarding the conclusion of the second reading, the deadline for submitting amendments, and the preparation for the third reading. Based on the currently published presentation transcripts, an intensive debate has taken place between the parties and parliamentary groups regarding tax and expenditure priorities, as well as priorities in national defense and the social sector.
Decisions Made 3
Conclusion of the second reading of the draft bill: 6 votes in favor, 2 against; there were no abstentions.
Setting the deadline for the submission of amendments: June 17th at 16:00; 7 votes in favor, 2 opposed, with no abstentions.
A proposal was submitted to the Management Board to shorten the deadline for making available the documents supporting the discussion of the third reading, provided the third reading takes place on June 19th: the materials would be available on June 18th at 17:00. Vote: 7 in favor, 2 against, 0 abstentions.
Most Active Speaker
The most active speaker is the participant identified by the ID 7G-qI3x8AbY, Annely Akkermann, who chairs the Riigikogu Finance Committee. Her appearances reflect the central role of the coalition’s financial debate and signal the management of the bill’s topics and procedural decisions. Providing flexible and frequent answers, she has represented the right-wing political direction, coordinating the interests of the committee and the factions with arguments that are defensive yet pragmatically impartial.
Esimees Lauri Hussar
AI Summary
The first item on our agenda today is the discussion of the second reading of Draft Law 456 on the 2024 State Supplementary Budget Act, initiated by the Government of the Republic. The presentation will be given by Annely Akkermann, Chairman of the Riigikogu Finance Committee.
Annely Akkermann
Profiling Eesti Reformierakonna fraktsioonAI Summary
The Riigikogu Finance Committee discussed the second reading of the 2024 supplementary budget bill. The committee introduced a €183 million package designed to lower the deficit below 3% of GDP and ensure compliance with EU budgetary rules. This package includes revenue measures that increase income through the collection of dividends and additional income tax, while simultaneously reducing expenditures by €104 million and investments by €23 million. Furthermore, the committee addressed the amendments proposed by the Isamaa faction, deciding not to consider some of them, and set the deadline for submitting further amendments for June 17th at 4:00 PM. The materials for the third reading will be made available on June 18th at 5:00 PM, ahead of the third reading scheduled for June 19th.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar thanks the presenter, announces that there are questions, and invites Urmas Reinsalu to respond.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu asked how the planned reduction in budget expenditures should be interpreted, noting that the formal 5 million euro reduction in non-earmarked funds does not reflect the actual redistribution, as, according to his data, the amount increased by 144 million euros due to 2023–2024 transfers. He also inquired about the size of the government’s reserve of non-earmarked funds when the 2024 budget was adopted, and how large it is now following the cuts.
Annely Akkermann
Profiling Eesti Reformierakonna fraktsioonAI Summary
He emphasizes that the transferred funds are not an additional budget, explaining that 144 million will be added and 5 million deducted. As a result, the earmarked reserve will increase by approximately 139 million euros. Furthermore, although the 750 million has drawn criticism, he believes it is not a very large sum compared to the 2024 expenditure budget of 18 billion euros, given that payments can carry over from year to year and many procurement disbursements are still pending.
Esimees Lauri Hussar
AI Summary
The Chairman calls upon Lauri Laats to take the floor.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
Lauri Laats highlights that, due to the negative supplementary budget, the funds earmarked for attracting foreign investments are being reduced by five million, and he asks how much lost revenue this cut will cost the state in the coming years.
Annely Akkermann
Profiling Eesti Reformierakonna fraktsioonAI Summary
There may be a correlation, but it might not hold true, and attracting the same volume of foreign investments can be achieved at lower costs.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar called upon Jaanus Karilaid, but it became clear that he was not currently present in the Parliament chamber, so he announced the next questioner, Anastassia Kovalenko-Kõlvart.
Anastassia Kovalenko-Kõlvart
Profiling Eesti Keskerakonna fraktsioonAI Summary
He explains that cuts are being made to the attraction of foreign investments, the promotion of the tourism sector, and operating grants provided to foundations and companies. He notes that this will result in the state losing 20–30 million euros in tax revenue next year, and asks whether this is a strategic approach to drafting the budget.
Annely Akkermann
Profiling Eesti Reformierakonna fraktsioonAI Summary
He emphasizes that increased advertising does not automatically bring in more tourists or votes, and the reasons behind these decisions should be sought directly from Tiit Riisalo and the minister himself.
Esimees Lauri Hussar
AI Summary
The Chairman invites Jaanus Karilaid to take the floor.
Jaanus Karilaid
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Jaanus Karilaid emphasized that, as the chairman of the Finance Committee, he must look at the big picture, because the deficits in social welfare and healthcare, coupled with the general chaos in financial policy, do not permit the detailed draft bill to be approved. He stated that it should be halted and solutions presented that rectify these problems.
Annely Akkermann
Profiling Eesti Reformierakonna fraktsioonAI Summary
This bill reduces the state budget, cuts expenditures, postpones investments, and draws down reserves so that the 2024 deficit remains within the European Union’s 3% deficit criterion and avoids the corrective procedure, all while emphasizing the necessity of making priority decisions and funding the social sector, education, and national defense.
Esimees Lauri Hussar
AI Summary
Lauri Laats is called to the stage at the beginning of the address.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
Lauri Laats criticizes the fact that the 5 million investment cut planned in the supplementary budget will lead to 20–30 million in unrealized tax revenue. Furthermore, the Riigikogu is being given only nine days to review the measure, which, in his opinion, is not normal and does not provide sufficient time to familiarize oneself with the draft legislation.
Annely Akkermann
Profiling Eesti Reformierakonna fraktsioonAI Summary
The Riigikogu has already reviewed the 2024 budget several times, and the matter of the five-million reduction in investments must be put to the minister, since ministers have decision-making freedom within their respective sectors.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar calls Aleksandr Tšaplõgin.
Aleksandr Tšaplõgin
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
The government is complaining about a lack of funds, but ministries left hundreds of millions of euros unused last year, and this raises the question of how that is even possible.
Annely Akkermann
Profiling Eesti Reformierakonna fraktsioonAI Summary
Annely Akkermann explains that it is not sensible to compare the state budget with the budgets of private individuals or private companies, and year-end balances are typically carried over to the following year. Therefore, 750 million out of 18 billion is a very small amount, which, when divided by 12, is even less than a single month's budget.
Esimees Lauri Hussar
AI Summary
The Chairman invites Urmas Reinsalu to the stage.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu stated that the unused sum amounts to 2.2 billion euros (not 750 million), and Isamaa’s proposals would improve the budget position this year by approximately 1.25% of GDP and next year by about 1.2% of GDP. However, he questioned why the governing coalition does not dare to implement substantive policies that would stabilize the nation’s finances, especially considering the impact of the economic environment, citing the Bank of Estonia’s reported 0.4% decline in GDP today.
Annely Akkermann
Profiling Eesti Reformierakonna fraktsioonAI Summary
Annely Akkermann claims that there is confusion in the budget, and consolidated balances might yield different figures. She notes that 2 billion euros, or amounts close to that figure, comprise the balances of the Unemployment Insurance Fund, the Health Insurance Fund, and the Social Insurance Board, which must not be cut to improve the budget position. The criticism is that the plan to reduce central government expenditure by 200 million euros must specify exactly which costs will be cut; otherwise, the budget cannot be presented correctly.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar directs his colleagues to proceed with the questions and calls upon Anastassia Kovalenko-Kõlvart.
Anastassia Kovalenko-Kõlvart
Profiling Eesti Keskerakonna fraktsioonAI Summary
Anastassia Kovalenko-Kõlvart points out that the supplementary budget cuts social welfare services, which are already deeply underfunded, such as child rehabilitation and special care. Furthermore, the special care waiting list has grown to over 2,000 people who have been waiting for a long time. She asks whether the commission discussed the legitimacy of these cuts and whether the Minister of Social Protection has proposed any changes.
Annely Akkermann
Profiling Eesti Reformierakonna fraktsioonAI Summary
The cuts to the Ministry of Social Affairs' portfolio were not discussed in the committee between the two readings. However, 929,070 euros in operating expenditure cuts and 1,274,815 euros in social services cuts were later read out, and the Minister of Social Affairs confirmed that they could cope with the reduced budget and cost savings.
Esimees Lauri Hussar
AI Summary
The Chairman thanked the rapporteur, announced that there were no further questions, opened the debate, noting that it was open to everyone, and invited Aleksandr Tšaplõgin to the Riigikogu podium as the first speaker.
Aleksandr Tšaplõgin
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Aleksandr Chaplygin is criticizing the government's financial policy, asserting that they stripped families of benefits, shut down the Kopli rescue team, failed to utilize hundreds of millions of euros, and the new supplementary budget is a direct consequence of these errors, which will only lead to further stagnation and deepening poverty. He states he cannot support this budget because his constituents should not be forced to suffer the consequences.
Esimees Lauri Hussar
AI Summary
The Chairman announces Urmas Reinsalu as the next speaker, and Reinsalu requests three minutes of extra time.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu claims that Isamaa views the current coalition as being in a leadership crisis and that Parliament lacks the maturity to make substantive decisions. He calls for the suspension of the bill's second reading in order to use the time for meaningful work and to present a specific alternative supplementary budget. This alternative budget would include 0.5% of GDP in government spending cuts (200 million euros), a reduction of 150 million euros in transferable funds, and the postponement of the Reform Party's tax hump, all while protecting national defense and aid to Ukraine. He emphasizes that the coalition has chosen the path of increasing taxes.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar called Annely Akkermann to the podium and gave her the floor.
Annely Akkermann
Profiling Eesti Reformierakonna fraktsioonAI Summary
Annely Akkermann emphasized that the Isamaa faction's proposal did not make it onto the list of amendments due to a lack of legal compliance, and the Finance Committee must ensure that the amendments being rushed to a vote in the plenary hall are legal, because the proposal to abolish the tax bulge is a tax reduction that leaves working people with approximately 500 million euros in their hands and increases the income tax burden for higher earners.
Esimees Lauri Hussar
AI Summary
The Chairman thanks [the speaker] and understands that the request is for a rebuttal concerning the views that have been expressed, and invites Urmas Reinsalu to speak for two minutes from his place.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu stated that the Reform Party's tax wedge project is being financed through borrowing intended for permanent expenditures. He characterized this as a manifestation of Latin American-style financial policy, noting that it lacks adequate revenue sources, thereby jeopardizing the 2025 budget and the ability to address critical security matters. He urged the adoption of a responsible fiscal policy, rather than relying on borrowed money for "Santa Claus-style" coverage.
Esimees Lauri Hussar
AI Summary
The Chairman called Anastassia Kovalenko-Kõlvart to the podium, and she requested additional time, three minutes.
Anastassia Kovalenko-Kõlvart
Profiling Eesti Keskerakonna fraktsioonAI Summary
The co-presenter argues that the supplementary budget fails to solve any problems, lacks a unified overall vision and strategy, and focuses solely on cuts, which will increase the deficit and endanger the economy and vulnerable populations. Therefore, a strategic budget is required—one that promotes economic growth and protects social services.
Esimees Lauri Hussar
AI Summary
The Chair thanks the previous speaker and announces that Riina Solman is next. She has requested the floor and wishes to make an address, and the Chair invites her to speak and participate in the discussions.
Riina Solman
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Riina Solman claims that the supplementary budget does not solve society's problems, and that the main beneficiaries of abolishing the tax hump are not low-wage earners but the wealthier, which creates permanent fiscal strain and burdens families above all else.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar requests an additional three minutes for the sitting.
Riina Solman
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Riina Solman criticizes that low-income earners, families, and the elderly are bearing the brunt of the VAT and tax changes. Meanwhile, people with higher incomes are free to consume or save their money abroad. Furthermore, she points out that after the elections, a 400 million euro cut to the defense budget was implemented, immediately followed by a package of tax reforms—including the car tax and land tax—which were intended to lower income tax for large families, a measure she considers unnecessary for society.
Esimees Lauri Hussar
AI Summary
The Chairman thanked [the previous speaker] and invited Lauri Laats to the Riigikogu podium next.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
Lauri Laats is calling for snap elections, accusing the government of failing to deliver on its promises and causing distraction, while emphasizing the importance of defense investments, Rail Baltic, and the nuclear power plant.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar concluded his speech and directed the discussion toward the review of the proposed amendments. He announced that the committee had received five amendments, stating that the first amendment, in line with the Finance Committee’s position, should be fully considered, while the second and third, in line with the Isamaa faction’s position, should be disregarded. He then called upon Urmas Reinsalu.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
I guess they said in the speech that Mart Maastik was the one before.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar briefly notes that Mart Maastik was already present, and adds: So be it.
Mart Maastik
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
The address mentions that the microphone is not switched on, and the amendment must be voted on.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar said the discussion is currently on the third amendment.
Mart Maastik
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Unfortunately, the speech is fragmented, and the sentence "Teise juures mul oli juba …" does not provide enough content for an accurate summary.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar said that you didn't have anything, and he watched very carefully.
Mart Maastik
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
He briefly confirms that something truly existed.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar announced that only the leadership, as members of the faction's board, can request and call for a vote, and if the person is not part of that leadership, the request cannot be taken into account, nor can a second amendment be voted on. Following this, he asked his colleagues to be attentive and noted that the faction leadership had made no such request, after which Urmas Reinsalu posed a question regarding the conduct of the session.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu asks how to interpret this law now.
Esimees Lauri Hussar
AI Summary
I currently interpret this to mean that we have reached the third amendment proposal.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu asks whether every amendment can be put to a vote by the leader of any faction.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar announced that they had reached the third amendment proposal, emphasized that the session chair and the leadership of the Isamaa faction must be present punctually and state their preference, noting that Mart Maastik does not represent the leadership, and furthermore, that the faction leadership's stance on the third proposal is to dismiss it, following which Helir-Valdor Seeder requested the floor.
Helir-Valdor Seeder
Profiling Isamaa fraktsioonAI Summary
He requests that this amendment be put to a vote.
Esimees Lauri Hussar
AI Summary
The Chair announces that preparations for the vote are commencing, Amendment Proposal No. 3 from the Isamaa faction is being presented, and the position of the lead committee is to reject it, and asks the participants to take a stand and cast their vote.
Esimees Lauri Hussar
AI Summary
The proposal was not supported: 13 in favor, 56 against, with no abstentions. Next, the fourth amendment proposal from the Isamaa faction will be presented, which the leading committee recommends rejecting.
Helir-Valdor Seeder
Profiling Isamaa fraktsioonAI Summary
He thanks you and asks you to vote for this amendment.
Esimees Lauri Hussar
AI Summary
Speaker Lauri Hussar thanked his colleagues, announced that he would put Amendment Proposal No. 4, submitted by the Isamaa faction, to a vote, and noted the leading committee's position to reject it, asking the Riigikogu (Parliament) to take a position and cast their votes.
Esimees Lauri Hussar
AI Summary
Fourteen members of the Riigikogu voted in favor of the proposal, 56 were against, and there were no abstentions; the proposal failed to gain support. This was followed by the fifth amendment proposal from the Isamaa faction and the position of the leading committee: to disregard it.
Helir-Valdor Seeder
Profiling Isamaa fraktsioonAI Summary
He/She asks for a vote on the amendment and urges everyone to consider the consequences before voting.
Esimees Lauri Hussar
AI Summary
Speaker Lauri Hussar called the Riigikogu to a vote on the fifth amendment proposal and noted that the leading committee's position was to reject it.
Esimees Lauri Hussar
AI Summary
The proposal received 12 votes in favor, 55 against, and there were no abstentions. Consequently, it failed to gain support. We have now reviewed all 456 amendments to the draft bill, and Urmas Reinsalu inquired about the procedure for reviewing the sitting.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu said that Isamaa had submitted five amendments, but one was left off the list and excluded from the vote. He then requested that the fifth proposal be put to a vote, which aims to improve the budget position for next year and postpone the Reform Party's planned tax hike. If this is not possible, he asked for a precise explanation detailing the specific section of the Rules of Procedure Act used as the basis for the exclusion.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar announced that all proposed amendments have been reviewed, and they are now preparing for a vote, by which the Isamaa and Estonian Centre Party factions seek to terminate the second reading of Draft Law 456 concerning the 2024 supplementary budget.
Esimees Lauri Hussar
AI Summary
Thirteen members of the Riigikogu supported the proposal, 57 voted against, and there were no abstentions; the proposal failed to gain support, and the deadline for concluding the second reading of Bill 456 and submitting amendments is 4 PM on June 17th of this year.