Draft law amending the 2024 State Budget Act (517 SE) – first reading
Session: 15th Estonian Parliament, 4th session, plenary session
Date: 2024-10-15 13:01
Participating Politicians:
Total Speeches: 51
Membership: 15
Agenda Duration: 52m
AI Summaries: 51/51 Speeches (100.0%)
Analysis: Structured Analysis
Politicians Speaking Time
Politicians
Analysis
Summary
The first reading concerns draft law no. 517 to amend the 2024 state budget law, initiated by the Republic's Government. The changes are largely of a technical nature and aimed at the redistribution of funding, not a change in the budget volume. Key points involve the transfer of expenses for defense-related special equipment to investments (€42 million), clarifications directed at infrastructure and land acquisition (respectively €27.6 million and €5.6 million), a reduction in loan obligations as a result of the repayment of loans and guarantees for COVID measures (€82 million), and additional redistribution of funding to the Ministry of Economic Affairs and Communications and the Ministry of Rural Affairs and Regional Development (respectively €69 million and €13.1 million). In addition, the draft addresses changes concerning the notation of departments related to financing transactions and targeted capital, and the establishment of the Enterprise and Innovation Foundation and the SmartCap defense industry fund. The budget volume is not changed, and the changes are based on the use of previous years' surpluses and a redistribution of financial possibilities.
Decisions Made 3
Bill No. 517 is concluded on the plenary session agenda and the bill is approved for its first reading; the leading committee is designated as the Finance Committee with a representative (rapporteur).
A consensus decision is made to include the draft on the plenary agenda and conclude the first reading; the deadline for submitting amendments is October 29th at 5:15 PM.
The draft will be based on the preparation of draft 517 and further work by committees, and limitations (in the presence of third-party facts) will not change the budget amount.
Most Active Speaker
The most active speaker was Urmas Reinsalu (Isamaa faction). His involvement encompassed various questions and observations in the context of budget amendments, and his role was as a member of the opposition faction (right-wing positions).
Aseesimees Toomas Kivimägi
AI Summary
Deputy Speaker Toomas Kivimägi announces the first reading of Draft Act 517 on the Amendment of the 2024 State Budget Act and invites Minister of Finance Jürgen Ligi to give his presentation.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi presented this year's budget amendments to the Riigikogu (Parliament). These changes involve reallocating 42 million euros from the Ministry of Defence's expenditure on special defense equipment into investments, increasing infrastructure spending by 27.6 million euros and land acquisition by 5.6 million euros, and reducing loan obligations by 82 million euros due to the repayment of COVID loans. The returned sums include 69 million euros for the Ministry of Economic Affairs and Communications and 13.1 million euros for the Ministry of Regional Affairs and Agriculture. Furthermore, the utilization of 75 million euros will be specified, the economic substance of the distribution of funds for subscribing to fund units will change within the Foundation for Entrepreneurship and Innovation, and 25 million euros will be directed to the defense industry fund established under SmartCap.
Aseesimees Toomas Kivimägi
AI Summary
The address was a vote of thanks, during which Aivar Kokk was invited to ask one question.
Aivar Kokk
Profiling Isamaa fraktsioonAI Summary
Aivar Kokk asks a modest question: why, considering the austerity policy and the budget being deep in the red, were greater savings not achieved during the 2024 reallocation of funds, and why have ministers generated millions in earmarks (or pork barrel funding) for themselves?
Rahandusminister Jürgen Ligi
AI Summary
The address explains that this is a budget reallocation, not a change in the overall budget size, and that the size was already reduced over the summer, with subsequent cuts concerning next year.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi thanks and requests the Chairperson of the Finance Committee, Annely Akkermann, to present the discussion and decisions adopted by the lead committee.
Annely Akkermann
Profiling Eesti Reformierakonna fraktsioonAI Summary
Annely Akkermann announced in the Finance Committee that the draft law amending the 2024 state budget had been adopted for its first reading, and it was consensually decided to place it on the plenary agenda and conclude the first reading, with the speaker here being appointed as the representative of the lead committee. At the same time, she emphasized that the amendments are primarily technical and that the need to take on loan obligations is decreasing due to the repayment of loans guaranteed during the COVID period. The deadline for submitting amendments is October 29 at 5:15 PM.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi thanked the audience and invited Urmas Reinsalu to answer questions.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu asked Akkermann why the government only proposed an amendment to budget lines totaling 72 million euros, and why the supplementary budget does not reduce any administrative expenditure, especially considering that last year costs increased by 1.6 billion and approximately 2 billion euros of unused funds from this year will be carried over to the next year.
Annely Akkermann
Profiling Eesti Reformierakonna fraktsioonAI Summary
Annely Akkermann stated that the reduction of expenditures addressed in the supplementary budget processed over the summer will not be touched, as only two months remain until the end of the year. However, the volume of carry-over balances is indeed large, and most of these represent the transfer of allocations for long-term projects, for which all ministers provided data, and in her view, this is justified in most cases.
Aseesimees Toomas Kivimägi
AI Summary
Deputy Speaker Toomas Kivimägi called upon Rain Epler.
Rain Epler
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Rain Epler noted with slight bewilderment that funds were being channeled from the Ministry of Climate to the Ministry of Defence for the implementation of the investment "Development of Offshore Wind Farms," and asked whether there had been any discussion regarding the background to this move.
Annely Akkermann
Profiling Eesti Reformierakonna fraktsioonAI Summary
The Ministry of Defence is purchasing radars that will allow additional areas to be released from national defense restrictions for wind farms, both in Ida-Virumaa and in other regions of Estonia, even though this was not discussed or recorded in the commission's minutes.
Tõnis Lukas
Profiling Isamaa fraktsioonAI Summary
He notes that although the austerity budget was adopted in the summer, economic growth forecasts have worsened since then, and asks whether the decision needed to be revisited when the situation changed, and whether the commission discussed the matter or simply placed blind trust in the government.
Aseesimees Toomas Kivimägi
AI Summary
Vice-Speaker Toomas Kivimägi invited Tõnis Lukas to take the floor.
Annely Akkermann
Profiling Eesti Reformierakonna fraktsioonAI Summary
Based on the latest data, I can say that revenue collection is on schedule, consistent with the summer economic forecast and the summer budget.
Aseesimees Toomas Kivimägi
AI Summary
Kalle Grünthal is invited to the podium to speak.
Kalle Grünthal
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Kalle Grünthal inquired whether, instead of rolling over large sums of money into the following year, consideration was given to partially utilizing those funds in underfunded sectors, such as the social and cultural sectors, and whether this possibility was debated.
Annely Akkermann
Profiling Eesti Reformierakonna fraktsioonAI Summary
Annely Akkermann stated that the vast majority of the funds being carried over during the review are related to the rollover of ongoing investments and other projects into the new fiscal year. The Ministry of Education is allocating the surpluses from certain projects toward the construction of the National Archives and its subsequent relocation to the National Library, and at least one such amendment is in place. The Ministry of Culture did not carry over the entire balance; instead, a portion was returned to the budget, thereby improving the previous year's position. The funds remained unused, this matter was not discussed in the committee, and I only have the figures that I was working with most recently.
Aseesimees Toomas Kivimägi
AI Summary
The speech was simply a request to Rain Epler.
Rain Epler
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Rain Epler highlighted the 69 million and the repayments of unplanned financing transactions that flowed back into the state budget during the preparation of the 2024 state budget. He asked whether this prompted them to be more attentive regarding loan requirements for the next budget period, ensuring that tens of millions needed to cover the loan are not overlooked this year.
Annely Akkermann
Profiling Eesti Reformierakonna fraktsioonAI Summary
Annely Akkermann stated that the budget is very substantial and growing every year, and it should be reviewed more frequently in the Riigikogu. However, unused money doesn't disappear anywhere, and the 2023 annual report by the National Audit Office contains only one remark, which will be discussed later.
Aseesimees Toomas Kivimägi
AI Summary
The core of the speech is a request to Aivar Kokk.
Aivar Kokk
Profiling Isamaa fraktsioonAI Summary
Aivar Kokk pointed out that more than 100 million euros is circulating within the Ministry of Economic Affairs and Communications, even though the figure being discussed is only around 70 million. He then asked why the true number is not being reported and exactly where this money is being allocated.
Annely Akkermann
Profiling Eesti Reformierakonna fraktsioonAI Summary
Annely Akkermann stated that during the preparation of the 2024 state budget, the Ministry of Economic Affairs and Communications received recoveries from unplanned financing transactions. The ministry plans to return 69.1 million euros from targeted funds back into the state budget, which will reduce the Ministry of Finance's loan obligations. She added that if money planned for programs remains unused, this is standard practice, and the funds can be reallocated.
Aseesimees Toomas Kivimägi
AI Summary
This address is a simple request to invite Urmas Reinsalu to speak.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu asked Akkermann what the 189 million euros of unused money was, which was carried over last year into this year's budget under the government's designation, and whether it is earmarked for a specific purpose and whether it is intended to be used in full or carried over to the next year.
Annely Akkermann
Profiling Eesti Reformierakonna fraktsioonAI Summary
Annely Akkermann stated that the 189 million figure was not discussed during the committee session, which is why there is no corresponding protocol; she is unable to comment line by line on the 18 billion euro budget she read off her phone and will arrange for a detailed response to be sent, given that the question is too specific to answer from this podium.
Aseesimees Toomas Kivimägi
AI Summary
Deputy Speaker Toomas Kivimägi calls upon Andrei Korobeinik to speak.
Andrei Korobeinik
Profiling Eesti Keskerakonna fraktsioonAI Summary
Andrei Korobeinik stated that unspent funds should be accounted for in the current budget proposal and should not be carried over to the following year, but rather returned to the reserve fund or reallocated among other sectors.
Annely Akkermann
Profiling Eesti Reformierakonna fraktsioonAI Summary
We discussed the carryover of the 2023 balances and concluded that this was a government decision, and that cutting additional costs retroactively is not expedient. The Finance Committee should therefore address the transfer of the year-end 2024 balances in March, allowing them to be apprised of the situation earlier than October.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi gives his thanks, states that there are no questions, opens the debate, and Urmas Reinsalu, speaking on behalf of the Isamaa faction, requests additional time, totaling eight minutes.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Reinsalu criticizes the indecisiveness and the resulting turmoil, noting that he walked out of the chamber when Mr. Ligi assumed his post.
Aseesimees Toomas Kivimägi
AI Summary
Deputy Chairman Toomas Kivimägi gave a speech.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu claimed that the 2025 budget and the 2024 supplementary budget increase the tax burden and fail to provide sufficient savings in administrative costs, and that Isamaa intends to use the 2024 supplementary budget to reduce governing costs by 0.5% of GDP. He added that, if necessary, they will submit an amendment proposal or reject the budget if the coalition does not change course.
Aseesimees Toomas Kivimägi
AI Summary
Andrei Korobeinik represents the Estonian Centre Party faction and requests the floor.
Andrei Korobeinik
Profiling Eesti Keskerakonna fraktsioonAI Summary
In his presentation, Andrei Korobeinik emphasized that the Estonian economy is in decline and that serious, transparent cuts must be made to the state budget to narrow the billion-euro deficit and ensure clarity regarding the origin and use of the funds.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi said that the proposal to reject the third point had ended up in the wrong paperwork, and now the Center Faction has the new document available. Therefore, the vote on rejection will still proceed, but if a formal, named proposal is desired, the correct document must be submitted. Inter-faction negotiations are not necessary, but the Minister of Finance will be given an opportunity, and finally, Minister of Finance Jürgen Ligi is called upon.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi said he was seriously concerned about Estonian democracy, blamed critics and defamation for the changes made to the budget, and stressed that the overall budget volume must not actually be changed—only transfers and allocations for crises are justified—and called for an end to the lies and slander and for a discussion on restoring the 3% limit.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi stated that the minister would open and close the round of negotiations. He noted that the factions no longer wished to participate in the discussion and requested that, going forward, if there is a desire to speak, it must be done before the minister takes the floor.
Andrei Korobeinik
Profiling Eesti Keskerakonna fraktsioonAI Summary
Andrei Korobeinik asks whether representatives of other factions should not be allowed to speak during the debate, reminds (us) that the initiator usually uses the closing statement to discuss their own initiative and not the government or the crisis, and asks whether, due to this incorrect practice, a good colleague from EKRE could be given the opportunity to speak.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi stated that the minister initiates and concludes the debate, and the right to a rejoinder should be limited solely to the factions that participated. Furthermore, the Riigikogu Board is discussing whether factions are even permitted to participate in the debate after the minister has taken part.
Helir-Valdor Seeder
Profiling Isamaa fraktsioonAI Summary
Helir-Valdor Seeder praised flexibility and creativity, stating that the Rules of Procedure must not impede the work of parliament. However, he offered an apology, presented as a procedural note on behalf of the Isamaa faction, for making the right proposal at the wrong time, and stressed that it must be utilized for the third item on the agenda.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi proposed a counter-rebuttal as a compromise, which Andrei Korobeinik would present, and this would be intended solely for those who participated in the negotiations.
Andrei Korobeinik
Profiling Eesti Keskerakonna fraktsioonAI Summary
Andrei Korobeinik highlighted two main points: first, the transferable money is not related to COVID, and the funds released due to unfilled positions will be carried over to cover salaries, and the government should discuss this topic further; secondly, he corrected Jürgen's claims about being in opposition regarding the introduction of the budget format, noting that this claim stems from internal opposition within the Reform Party, does not correspond to reality, and requires looking further into the past.
Aseesimees Toomas Kivimägi
AI Summary
The Deputy Chair thanked the speaker and noted Rain Epler's question addressed to the Presiding Officer.
Rain Epler
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Rain Epler emphasizes that the negotiations are not yet closed, and asks why he is not allowed to express his thoughts or participate, given that the board has demonstrated an uncertain and divided approach over the last year and a half, and good practice has been applied selectively.
Aseesimees Toomas Kivimägi
AI Summary
He confirmed that the negotiations have not yet concluded, noting that it is traditional for the minister to initiate and consolidate the results of the talks. He asked them to stick to the current compromise, which allowed for a rebuttal, and to discuss within the board whether the minister should have the right to a counter-reply.
Rain Epler
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Rain Epler said that he won't start opening the yellow book right now, but negotiations are more fruitful the longer they are held and opinions are exchanged mutually, and he is not opposed to the minister expressing an opinion in turn after his speech, but he does not know if the yellow book allows that.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi stated that although the 'yellow book' provides an opportunity, a line must be drawn, and the minister retains the final say. He then concluded the negotiations and announced that the leading committee wishes to conclude the first reading of Draft Act 517, but noted the Estonian Centre Party faction's proposal to reject Draft Act 517 during the first reading, and asked his colleagues to take a position and proceed to a vote.
Aseesimees Toomas Kivimägi
AI Summary
25 members of the Riigikogu voted in favour of the proposal, 53 were against, and there were 0 abstentions; consequently, the proposal failed to gain support. The first reading of Bill 517 is concluded, the deadline for submitting amendments is October 29th at 17:15, and the proceedings on the first item on the agenda are concluded.