Third Reading of the Draft Law on the State Supplementary Budget for 2024 (Bill 456 SE)
Session: 15th Riigikogu, 3rd session, extra plenary sitting
Date: 2024-06-19 13:09
Participating Politicians:
Total Speeches: 34
Membership: 15
Agenda Duration: 43m
AI Summaries: 34/34 Speeches (100.0%)
Analysis: Structured Analysis
Politicians Speaking Time
Politicians
Analysis
Summary
The agenda item under consideration dealt with the third reading of Draft Law 456 concerning the State's 2024 Supplementary Budget Act. The purpose of the draft is to reduce the general government deficit to below 3% of GDP to meet European Union budgetary rules, and to allocate a total of 183 million euros via the supplementary budget—comprising 115 million euros in savings and 68 million euros in additional revenue measures, including increased dividends and supplementary income tax collection. The decrease in expenditures is projected to be 104 million euros, and the decrease in investments by 23 million euros; revenues are set to increase by 42 million euros. The third reading of the draft took place today following deliberation, and the commission reached several consensus decisions regarding the advancement of the proposed amendments.
Decisions Made 4
The Finance Committee decided to conclude the third reading of the draft bill and proceed to the final vote.
Regarding amendment proposals No. 1 and No. 3 of the Isamaa faction, it was decided that they should be disregarded and not taken forward for a vote in the plenary hall (in accordance with Section 120, Subsection 5 of the Riigikogu Rules of Procedure and Internal Rules Act).
Result of the Final Vote: The bill is to be adopted (the number of votes in favor exceeds the required simple majority).
Bill 456 has finally been adopted as law by the Riigikogu (61 votes in favor, 12 against).
Most Active Speaker
The most active speaker was Annely Akkermann (7G-qI3x8AbY), who served as the Chair of the Finance Committee and spoke extensively about the background of the draft legislation, the proposed amendments, and the significance of the final vote. Her role representing the Finance Committee places her in the "other" category (not part of the public division into left-wing or right-wing). Her presentations reflect a leading role in the budget process and cooperation with the coalition regarding the clarification of the technical and political aspects of the bill.
Esimees Lauri Hussar
AI Summary
The first item on the agenda is the third reading of draft law 456 concerning the 2024 state supplementary budget, initiated by the Government of the Republic. The report will be presented by Annely Akkermann, Chairman of the Finance Committee. The presentation is limited to 20 minutes, and each member of the Riigikogu may submit up to two questions.
Annely Akkermann
Profiling Eesti Reformierakonna fraktsioonAI Summary
The preparatory discussion held during the Finance Committee session on June 18th addressed the third reading of the draft bill, and the speaker also recalled something.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar asked the technicians to move the microphones closer to the speaker, noting that the audio level was fluctuating and something needed to be done about it.
Annely Akkermann
Profiling Eesti Reformierakonna fraktsioonAI Summary
Annely Akkermann asks if she can be heard better now.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar said that the situation is now significantly better, and thanked Annely Akkermann.
Annely Akkermann
Profiling Eesti Reformierakonna fraktsioonAI Summary
The Riigikogu Finance Committee discussed the third reading of the 2024 supplementary budget, which aims to reduce the deficit below 3% of GDP and has a total volume of 183 million euros. Furthermore, regarding the five amendment proposals from the Isamaa faction, it was decided that their text cannot be incorporated into the draft bill and they will not proceed to the plenary session for a vote.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar asked Annely Akkermann and her colleagues to converse outside or more quietly, so that the presenter could be heard.
Annely Akkermann
Profiling Eesti Reformierakonna fraktsioonAI Summary
The Finance Committee declined to review three amendments submitted by the Isamaa faction and did not add them to the list, and it reached a consensus decision to conclude the third reading and proceed to the final vote, for which the adoption of the bill requires a simple majority.
Esimees Lauri Hussar
AI Summary
The Chairman thanked the presenter and called on Urmas Reinsalu to ask questions.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu asked Ms. Akkermann why 100.4 million euros had accidentally appeared twice in the 2023 state budget, what the current status of that sum is on the Ministry of Economic Affairs and Communications (MKM) account, and how such a mistake could have happened in the first place.
Annely Akkermann
Profiling Eesti Reformierakonna fraktsioonAI Summary
Annely Akkermann said that the 2023 state budget bill received the support of all factions, but the funds allocated for the energy sector might remain unused, resulting in a state budget surplus remaining in the state treasury.
Esimees Lauri Hussar
AI Summary
The Chairman thanks the previous speaker and announces Andrei Korobeinik as the next questioner.
Andrei Korobeinik
Profiling Eesti Keskerakonna fraktsioonAI Summary
This speech raises concerns about injustice and double standards. While a ministry can find 100 million [euros], the committee demands that the Isamaa faction detail the costs associated with all their amendments with euro-level precision. Consequently, the Isamaa proposals fail to reach the plenary session, which infringes upon the deputies' right to participate in the legislative process and may constitute an unconstitutional approach.
Annely Akkermann
Profiling Eesti Reformierakonna fraktsioonAI Summary
Annely Akkermann criticized Isamaa's proposal for a 200 million euro cut to the central government, emphasizing that the cuts must clearly specify exactly which budget lines they are being taken from (not just where they are *not* being taken). Furthermore, she stated that the cuts must not affect national defense or the salaries of teachers, police officers, and rescue workers, otherwise the draft bill will be unsuitable for the state budget and is simply doubly populist.
Esimees Lauri Hussar
AI Summary
The Chairman invites Rene Kokk to take the floor.
AI Summary
Rene Kokk raised the issue of the 100.4 million error, suggesting it might have fallen under the purview of a different ministry. He then asked directly whether the current supplementary budget contains similar hidden catches.
Annely Akkermann
Profiling Eesti Reformierakonna fraktsioonAI Summary
Annely Akkermann said that the supplementary budget had been negotiated month by month, that it was small and contained no errors. She did not accuse Reinsalu, but clarified that while Reinsalu had suggested the budget was presented by him, it was actually a budget presented by his predecessor and processed by the Riigikogu.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar invites Riina Solman to speak.
Riina Solman
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Riina Solman expresses strong reservations about the supplementary budget, citing the inconsistency between the promises made in 2023 and the subsequent reality. She argues that the abolition of the tax curve primarily benefits the wealthy, rather than low-income earners, and notes that the Ministry of Finance estimates this will create a permanent budget deficit that must be covered by tax hikes. Consequently, trust in this draft legislation is difficult.
Annely Akkermann
Profiling Eesti Reformierakonna fraktsioonAI Summary
Annely Akkermann explains in her speech how the tax hump primarily affects those earning 1200–2100 euros, and how the 700 euro tax-free allowance and 22% income tax, set to take effect starting in 2025, along with the abolition of the tax hump, collectively represent a lowering of labor taxes, which is a natural response to changes in societal development.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar expresses his thanks and invites Urmas Reinsalu to take the floor.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu asked whether adhering to the Reform Party government's promise of an approximately 400 million euro cut in defense spending and the tax hump is sustainable and responsible in the current security and economic context, given that the running budget deficit is being covered by ten-year borrowing amounting to nearly 6 billion euros.
Annely Akkermann
Profiling Eesti Reformierakonna fraktsioonAI Summary
Annely Akkermann claimed that under Kaja Kallas’s government, defense spending has risen above 3% and exceeded a billion (euros), stating that this was a clear political decision and was also funded. Therefore, it is an exaggeration to accuse the Reform Party of irresponsibility regarding national defense.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar asks Andrei Korobeinik to come forward.
Andrei Korobeinik
Profiling Eesti Keskerakonna fraktsioonAI Summary
Korobeinik emphasizes that costs are lower in absolute terms due to the economic downturn during the Reform Party's time in power, that tax changes must be adopted within six months according to the law, and that in Lithuania, the social tax is around 20% and labor taxes are generally lower, which has given Lithuania an edge in economic competitiveness over Estonia.
Annely Akkermann
Profiling Eesti Reformierakonna fraktsioonAI Summary
Following two consecutive years of wage growth above 10%, Estonian labor taxes are now average in the European Union. Nevertheless, we are transforming into a high labor cost country, and eliminating the tax hump would be a measure to support competitiveness.
Esimees Lauri Hussar
AI Summary
There are no further questions. I open the debate and invite Andrei Korobeinik, representative of the Centre Party faction, to the Riigikogu rostrum.
Andrei Korobeinik
Profiling Eesti Keskerakonna fraktsioonAI Summary
Andrei Korobeinik has criticized the supplementary budget, calling it harmful and misleading. He points specifically to the discovery of 100 million euros that went unused, as well as the unfair distribution of the bank tax, which he argues exacerbates poverty among pensioners. Furthermore, he refers to the Reform Party's economic policy as the "squirrel economic policy."
Esimees Lauri Hussar
AI Summary
He asked for three minutes of extra time.
Andrei Korobeinik
Profiling Eesti Keskerakonna fraktsioonAI Summary
Andrei Korobeinik argued that during the proceedings of the supplementary budget, the Riigikogu itself must decide which amendment proposals reach the floor. He criticized the committee's decision not to send the Isamaa proposals to the chamber and called for a vote against the supplementary budget, citing the problem of opaque budget management and unclear expenditure items.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar called Urmas Reinsalu to the Riigikogu podium on behalf of the Isamaa faction, and Reinsalu requested three minutes of additional time.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu stated that Isamaa supported the supplementary budget, but criticized the coalition's fiscal policy as failing to meet the required standard and lacking substantive ambition, pointing out that the composition of postponing the tax hump and cutting defense spending is contradictory, and that there are errors in budget management, with unused funds intended to be double-counted. Nevertheless, Isamaa will vote in favor of the budget.
Esimees Lauri Hussar
AI Summary
The negotiations were concluded; two amendments proposed by the Isamaa faction were rejected and will not be put to a vote, and the lead committee decided to hold the final vote on Draft Bill 456, after which the draft law on the state's 2024 supplementary budget will be put to the final vote.
Esimees Lauri Hussar
AI Summary
Bill 456 has been adopted as law: 61 votes in favor, 12 against, and there were no abstentions.