Overview of the Use and Preservation of State Property in 2023–2024. Five Years of Activity-Based State Budget: Results of the Reform and Necessary Further Decisions
Session: 15th Riigikogu, 4th session, plenary sitting
Date: 2024-11-06 18:01
Participating Politicians:
Total Speeches: 48
Membership: 15
Agenda Duration: 1h 23m
AI Summaries: 48/48 Speeches (100.0%)
Analysis: Structured Analysis
Politicians Speaking Time
Politicians
Analysis
Summary
The agenda item under discussion concerns the use and preservation of state assets for 2023–2024 and refers to five periods of activity-based state budget reform, the assessment of its results, and the need for further decisions. As representative of the National Audit Office, Janar Holm presented, highlighting the main problems in budget transparency, the purposefulness of the use of funds, and the lack of connection between performance indicators and expenditure rules. The discussion covered how financial resources are distributed and where the essential public benefit ultimately reaches.
In the second half of the discussion, critical comments were made regarding the practice of drafting the state budget: inconsistencies in the explanatory memorandum, overlaps in the content of the budget and explanatory memorandum, and the limited success of ministries' efforts to link substantive results. The need was emphasized to address the budget substantively (regarding its purpose and use), rather than with formal keywords and superficial gloss. The experience of Finland was cited as a possible model for streamlining details and increasing understanding, and it was stressed that transparency is necessary, but it should not be hidden or wasted on formal verbiage. Finally, it was noted that the state needs clearer decisions and a culture of critically asking questions, so that the use of money is meaningful and the public can clearly see what is being done and why.
Decisions Made 1
No decisions were made. The Riigikogu left the questions open and emphasized the need to find the best solutions regarding budget transparency and metrics through further discussions and cross-faction negotiations.
Most Active Speaker
Anti Allas (Social Democratic Party) was the most active speaker in this section; he represents the left-wing opposition. His presentations reflected criticism of the transparency and oversight situation regarding the state budget, and offered an alternative view on the connection between expenditure budgets and results.
Aseesimees Arvo Aller
AI Summary
The Parliament discusses the use and preservation of state property for 2023–2024, the results of the five-year, performance-based state budget reforms, and the necessary further decisions, with Auditor General Janar Holm presenting.
Riigikontrolör Janar Holm
AI Summary
State Comptroller Janar Holm notes that the Estonian state budget is not actually performance-based nor transparent, because the explanatory note and the cost line-item data do not clearly show to whom, how much and for what purpose money is allocated and what results are achieved with it; ministries do not link expenditures to objectives and results, and the Ministry of Finance performs more of a technical service than a critical budget analysis, therefore there is a need for a substantive, unified and auditable budget process, where in one place there would be understandable information about the purpose of money use and the results.
Aseesimees Arvo Aller
AI Summary
The vice-chair thanked the presenter and invited Anastassia Kovalenko-Kõlvarti to take the floor and to ask questions.
Anastassia Kovalenko-Kõlvart
Profiling Eesti Keskerakonna fraktsioonAI Summary
Expressing gratitude for the work of the esteemed Auditor General, the speech notes that the Ministry of Finance is gradually losing control over the ministries, reducing its role in the preparation of substantive budgets and in evaluating the justification of expenditures, and becoming merely a technical service provider, and asks for clarification on how this situation arose and what risks may accompany it.
Riigikontrolör Janar Holm
AI Summary
Auditor General Janar Holm said that in earlier expert meetings base data on expenses were discussed and ministries were allowed to ask questions, but now traditional meetings occur very rarely, information is simply passed on, and the topic of additional funding requests is dominant, which reduces substantive discussion and highlights the need for the finance department's oversight, which would review already made decisions.
Aseesimees Arvo Aller
AI Summary
At the start of the speech, Lauri Laats is invited onto the stage.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
Lauri Laats expressed deep dismay at the deficiencies of the state budget and other reports, noting that the main faults stem from officials and from the lack of oversight by the Ministry of Finance, and at the same time he thanked the institution that brings these problems to the public and sheds light on them.
Riigikontrolör Janar Holm
AI Summary
According to State Comptroller Janar Holm, problems arise due to the last-minute approval of budget-related decisions and the complexity of the explanatory note, because the data are dispersed and there is a need for more concise information and institutional control of the justification of base costs, although the accounting is sound, and on that basis the budget can be improved.
Aseesimees Arvo Aller
AI Summary
The speech was a short prayer to Anti Allas.
Anti Allas
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
The speaker expresses sadness about the country's current situation and asks the State Comptroller whether the upcoming national budget should be purely cost-based, or whether there is anything positive to take away from this experiment.
Riigikontrolör Janar Holm
AI Summary
State Comptroller Janar Holm said that the budget issue is not merely a matter of an activity-based or a classical approach, but the draft must clearly show where the money goes, to whom and for what purpose, and how much; if it is possible to tie it to services, objectives and results, this should be done; otherwise it is worth following the classical method.
Aseesimees Arvo Aller
AI Summary
The speaker asks Aivar Sõerd to take the floor.
Aivar Sõerd
Profiling Eesti Reformierakonna fraktsioonAI Summary
Aivar Sõerd claims that the five-year activity-based budget has failed, the use of outcome information is inadequate, and the entire system’s design and maintenance are a significant cost to taxpayers, and he asks whether anyone has assessed how much this futility has cost taxpayers.
Riigikontrolör Janar Holm
AI Summary
The Auditor General Janar Holm states that the cost of the reform is unknown and the problems are the costs of reports that no one uses, a hidden budget and an incomplete overview, which may lead to funds being directed to places where they are not desired, but if the explanatory memorandum describes more precisely where the money goes, questions arise as to why, and this could help save costs and direct the money to the areas that actually need it.
Aseesimees Arvo Aller
AI Summary
The vice-chairman Arvo Aller asks Kalle Grünthal to take the floor.
Kalle Grünthal
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Grünthal accused the State Audit Office of opacity and lack of oversight, and asked how, in light of this oversight, state finances and the budget are understood to be put in order.
Riigikontrolör Janar Holm
AI Summary
Auditor General Janar Holm said that putting public finances in order is a big issue, and by 2026 it should resolve part of the problems and provide a clear overview of where the money goes, how much, to whom and for what, what needs to be done through explanatory notes and clarification of the law.
Aseesimees Arvo Aller
AI Summary
Irja Lutsar is invited to give a speech.
Irja Lutsar
Profiling Eesti 200 fraktsioonAI Summary
Irja Lutsar pointed out that healthcare performance indicators may not work, and recommended reviewing them and redirecting the focus to indicators that would bring real improvements in population health through funding.
Riigikontrolör Janar Holm
AI Summary
Auditor General Janar Holm emphasized that, when necessary, the budget should be used according to either an activity-based approach or a traditional cost-based approach, and in evaluating money-related results there must be a meaningful system of metrics, not the filling of arbitrary indicators.
Henn Põlluaas
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Henn Põlluaas describes the Estonian budget as absurdly grotesque and catastrophic, accuses Ministry of Finance officials in Latvia of promoting a performance-based budget, and assumes that in the European Commission as well there is discussion of a transition similar to Estonia's example.
Aseesimees Arvo Aller
AI Summary
The deputy chairman Arvo Aller asks that Henn Põlluaas speak.
Riigikontrolör Janar Holm
AI Summary
The State Comptroller Janar Holm said that although the Latvian example showed Estonia's success and that results-based budgeting is recommended by the OECD, its final implementation depends on Brussels, and as an idea, distributing money based on results is completely normal.
Aseesimees Arvo Aller
AI Summary
The vice-chairman Arvo Aller invited Signe Kivi onto the stage.
Signe Kivi
Profiling Eesti Reformierakonna fraktsioonAI Summary
They recall the 2000 state budget, note that the current material is considerably more thorough, and ask whether the budgets of the public-law cultural institutions operating under the Riigikogu—namely the National Opera, the Estonian Public Broadcasting, and the National Library—could be presented more comprehensively in the Ministry of Culture's budget, as the heads of the culture committee have requested.
Aseesimees Arvo Aller
AI Summary
The speech emphasizes that your time has come.
Signe Kivi
Profiling Eesti Reformierakonna fraktsioonAI Summary
Signe Kivi asks how the budget for a particular ministry could be presented differently, based on Academician Jaak Aaviksoo's proposal.
Riigikontrolör Janar Holm
AI Summary
The Auditor General Janar Holm said that the level of detail in the budget is a topic of debate, and the right level will be decided by the Riigikogu and the government, starting with brief, concrete and compact solutions, but the exact answer will only come when the process is launched.
Aseesimees Arvo Aller
AI Summary
This is simply a request to invite Andres Sutt to perform.
Andres Sutt
AI Summary
Andres Sutt emphasizes that the state's accounting is in order and that this provides a solid foundation for moving forward; he has looked at some parts of the budget and the explanatory note and notes that the Rail Baltica-related addendum contains a fairly detailed overview of management decisions and the situation; he highlights the Health Insurance Fund's budget as being about 2.4 billion, a figure confirmed by the council; and finally asks how these connections relate to one another and requests a comment on the Health Insurance Fund topic.
Riigikontrolör Janar Holm
AI Summary
State Comptroller Janar Holm criticized the budget explanatory notes for Rail Baltica and the Estonian Health Insurance Fund, noting that the figures do not add up and the document does not provide an understanding of how much money is allocated and what is actually used, and these need to be clarified.
Aseesimees Arvo Aller
AI Summary
No more questions; thank you, and I will open negotiations between the factions; on behalf of the Estonian Centre Party faction, Anastassia Kovalenko-Kõlvart requests three minutes of extra time.
Anastassia Kovalenko-Kõlvart
Profiling Eesti Keskerakonna fraktsioonAI Summary
Anastassia Kovalenko-Kõlvart says that the state budget is a rolling snowball — costs are rising, but how the money is spent and the directions of cuts are unclear; the activity-based budget has collapsed; the ministries' responses are superficial; and there is a need for a cost-based budget and for clarification of the explanatory notes, together with amending the law and increasing parliamentary oversight.
Aseesimees Arvo Aller
AI Summary
Your time has come.
Anastassia Kovalenko-Kõlvart
Profiling Eesti Keskerakonna fraktsioonAI Summary
Anastassia Kovalenko-Kõlvart emphasizes that members of the Riigikogu must be able to ask questions, speak, and submit amendments, because that would be honest and statesmanlike and would meet voters' expectations.
Aseesimees Arvo Aller
AI Summary
Deputy Speaker Arvo Aller then invites Anti Allas to speak on behalf of the faction.
Anti Allas
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Anti Allas stresses, based on the National Audit Office's report, that activity-based budgeting has not been very effective and creates confusion, and in his view, cost-based and activity-based budgeting should be combined, but he prefers focusing on cost-based budgeting, while ensuring clear traceability of spending objectives and adherence to a timely and transparent plan.
Aseesimees Arvo Aller
AI Summary
Next, Maris Lauri, who is speaking on behalf of the Reform Party faction, requests three additional minutes.
Maris Lauri
Profiling Eesti Reformierakonna fraktsioonAI Summary
According to Maris Lauri, a five-year activity-based budget has revealed confusion and a lack of strategic leadership and requires thorough preparation as well as consideration of clear performance outcomes and risks, before even considering returning to a cost-based budget and broad-based cooperation with the opposition.
Aseesimees Arvo Aller
AI Summary
Marek Reinaas represents the Eesti 200 faction and makes a request.
Marek Reinaas
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Marek Reinaas points out that Eesti 200 agrees with much of the National Audit Office's report and emphasizes that it is necessary to continue the activity-based budgeting and the zero-budgeting process, continuously asking “why?” to reveal duplications and to save money and improve metrics.
Aseesimees Arvo Aller
AI Summary
On behalf of the Isamaa faction, Urmas Reinsalu asked for three minutes of extra time.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
According to Urmas Reinsalu, the State Audit Office’s report shows that budget management is out of control: money remains unused, there are too many metrics, and reality is obscured by rhetoric; therefore a paradigm shift is needed and Isamaa’s basic principle, where governance comes before resources, and a truly functioning cost-accounting system will be restored so that the state can truly be governed and savings can be achieved.
Aseesimees Arvo Aller
AI Summary
The presenters were thanked, there are no more requests to speak, and Anti Allas submitted a procedural question to the chair of the session.
Anti Allas
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Anti Allas asks whether it is polite for a speaker to point at people in the audience with a finger, and notes that he is used to it, but emphasizes that if it is directed at an older woman, it is certainly impolite.
Aseesimees Arvo Aller
AI Summary
Arvo Aller raised the issue of pointing with a finger in the hall, noting that a counter-speech could have been directed at the individuals in question or at the coalition, but pointing directly at someone was not considered appropriate, and the negotiations have ended, and Urmas Reinsalu wants to raise a procedural question.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu emphasized that the parliament chamber must host a genuine dialogue and a feedback environment, and he did not direct the criticism at the woman, but at Mr. Reinaas — this is a testament to the quality of political dialogue, and we take this as the starting point.
Aseesimees Arvo Aller
AI Summary
He said that it was not particularly related to the procedure, but rather a clarification for this action, and he thanked and announced that the ninth item on the agenda had been exhausted for today.