Budget
Session: The 15th Riigikogu, 6th Session, Information Hour
Date: 2025-10-08 16:40
Participating Politicians:
Total Speeches: 26
Membership: 15
Agenda Duration: 12m
AI Summaries: 26/26 Speeches (100.0%)
Analysis: Structured Analysis
Politicians Speaking Time
Politicians
Analysis
Summary
The eighth question during the Riigikogu (Parliament) information hour concerned the government's draft budget and the deficit. The question was posed by Riigikogu member Urmas Reinsalu, and the answer was provided by Prime Minister Kristen Michal. Reinsalu sharply criticized the budget, calling it "paltry" and a "post-us-the-deluge" budget. He accused the government of irresponsible behavior because the Reform Party's promise to eliminate the tax hump is being fulfilled with borrowed money, which forecasts the continuation of the deficit until 2070. Reinsalu claimed that the government's promise to reduce administrative costs remains unfulfilled; according to his data, administrative costs (personnel, economy, non-statutory subsidies) will actually increase by 1.9 billion euros by 2026 compared to the 2024 budget. He cited unreasonable expenditures, such as the construction of a 60-million-euro log house for environmental agencies and large sums allocated for the administration of the car tax.
Prime Minister Michal rejected Reinsalu's figures, accusing him of arbitrary manipulation of data. Michal confirmed that the government has implemented cuts totaling 1.4 billion euros since the time of Kaja Kallas's government, and further cuts are forthcoming. He emphasized the positive aspects of the budget, particularly raising defense spending to 5% of GDP and lowering the tax rate, which leaves the working person with roughly the equivalent of a 13th month's salary annually. Michal demanded concrete proposals for cuts from Reinsalu, rather than generalized criticism. In a follow-up question, Reinsalu continued the dispute over the figures, demanding a specific explanation of where this 1.4 billion euro saving is visible in the 2026 budget. Michal replied that the cuts also consist of eliminating growth in an inflationary environment and reallocating funds, citing as an example the 19% reduction in staff achieved through the merger of the Land and Space Board. In an additional question, Tõnis Lukas asked about agreements with local governments regarding teacher salary increases and the career model. Michal responded that the Prime Minister does not conduct these negotiations but confirmed an increase in the minimum salary by approximately 8% and an increase in the differentiation fund by 2%.
Decisions Made 1
No decisions were made
Most Active Speaker
Urmas Reinsalu, a right-wing politician, was the most active speaker, posing sharp and fact-based questions regarding the budget deficit and the growth of government spending, and held a heated debate with the prime minister over the figures for the cuts.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar introduces the eighth item on the agenda, during which Riigikogu member Urmas Reinsalu will proceed to question Prime Minister Kristen Michal regarding the budget.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar grants the floor to Riigikogu member Urmas Reinsalu, who is ready to pose today's eighth question to Prime Minister Kristen Michal regarding the state budget.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu sharply criticizes the budget presented by the prime minister, deeming it "paltry" and irresponsible because it funds election promises using borrowed money, forecasts a deficit until 2070, and accelerates inflation. He demands a reduction in administrative spending and a correction of the deficit, highlighting the contradiction that while the prime minister promised to cut costs, the draft budget shows those costs increasing by 1.9 billion euros. He asks directly why the government's words and actions diverge.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu sharply criticizes the budget presented by the Prime Minister, deeming it irresponsible, inflationary, and a document drafted in an "after us, the deluge" style. He argues that the budget finances election promises using long-term debt, projecting a deficit that will last until 2070. The speaker further accuses the government of allowing administrative costs to increase by 1.9 billion euros, rather than implementing the promised cuts. He demands that the budget be corrected, noting that Isamaa will simultaneously submit its own alternative proposal.
Peaminister Kristen Michal
AI Summary
Prime Minister Kristen Michal defended the government's budget, calling it very good based on objective indicators, highlighting the historic rise in defense spending to 5% and the reduction of the tax rate, which leaves significantly more money in the hands of working people. At the same time, she criticized the questioner for throwing around arbitrary numbers and demanded concrete proposals for cuts, rather than generalized talk about closing schools or reducing the number of rescuers.
Peaminister Kristen Michal
AI Summary
Prime Minister Kristen Michal defended the government's budget, highlighting the historically largest tax rate reduction, which puts extra money in the pockets of working people, and the increase in defense spending to 5%, which guarantees Estonia's security. He also criticized the questioner for operating with arbitrary figures and failing to provide concrete proposals for cuts, stressing that previous reductions (totaling about 1.4 billion euros) have already caused a public backlash, and that abolishing the tax kink is necessary because it was implemented by the previous coalition partners.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar thanked the previous speaker or topic and then gave the floor to Urmas Reinsalu to ask a clarifying question.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu accuses the prime minister of manipulating facts and demands an explanation as to how the 1.9 billion euro increase in governance costs in the 2026 budget draft is compatible with the government's alleged 1.4 billion euro saving. He highlights several examples of irresponsible squandering of money, such as the 60 million euro construction of the building for environmental agencies, bog establishment projects, and the administrative costs of the car tax, recommending that the latter be canceled entirely.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar confined himself to the brief phrase "Your time!", which he used to signal the start of the speaking period or to give the floor to the next speaker, without delivering a substantive address himself.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu is demanding a specific explanation from the prime minister detailing where the promised €1.4 billion reduction in administrative spending, relative to 2024, is reflected in the 2026 budget.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu repeatedly questioned the Prime Minister, demanding concrete evidence regarding the claimed 1.4 billion euro saving in administrative expenditure in the 2026 budget, since his data indicates that costs have actually increased by 1.9 billion. He further criticized the government for irresponsible spending, citing the 60 million euro construction project for environmental agencies, the establishment of wetlands, and the administrative costs of the car tax as examples.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar announced that Urmas Reinsalu had a clarifying question, and subsequently gave the floor to the Prime Minister.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar thanked the previous speaker and subsequently gave the floor to Urmas Reinsalu to ask a clarifying question, concluding by asking the Prime Minister to continue his address.
Peaminister Kristen Michal
AI Summary
Prime Minister Kristen Michal chastises the questioner for failing to understand the budget process, explaining that in an inflationary environment, keeping funding flat actually constitutes a real cut. She notes that while defense spending has risen drastically (from 1% to 5%), other sectors have been intensively scaled back, for instance, through the merging of agencies and the elimination of planned budget increases, while the proposed pension cuts by the right wing have been abandoned.
Peaminister Kristen Michal
AI Summary
Prime Minister Kristen Michal criticized the Speaker of the Riigikogu for failing to understand budget processes, explaining that the sharp increase in defense spending to 5% necessitated intensive cuts and contraction across other state sectors, such as merging agencies and eliminating growth, emphasizing that in an inflationary environment, even keeping funding levels flat actually amounts to a contraction.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar thanked [the previous speaker/audience] and introduced Tõnis Lukas, who then posed the next—the supplementary—question.
Tõnis Lukas
Profiling Isamaa fraktsioonAI Summary
Tõnis Lukas is appealing to the Prime Minister concerning the promised teachers' salary increases and the new career model, which were slated to come into force in 2026. He points out that while the draft budget does contain some provision for a pay rise, the negotiations between the government and the association of local authorities have failed to secure a fixed agreement on teachers' salary increases for the subsequent years (RES). Consequently, he is demanding clarification on the outcome of these negotiations and the reasons for the absence of a long-term pay increase.
Tõnis Lukas
Profiling Isamaa fraktsioonAI Summary
Tõnis Lukas is addressing the Prime Minister to seek clarity regarding the implementation of the teachers' salary increase and the new career model. He emphasizes that although some salary increase is provided for in the draft budget, he is concerned about the outcome of the negotiations between the government and the association of local authorities, since the agreements and future plans concerning the teachers' pay rise within the state budget strategy have not been finalized.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar signaled the start of the speaker's allotted time with the brief announcement, "Your time!"
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar concluded his address, thanked the audience, and then handed the floor over to the Prime Minister.
Tõnis Lukas
Profiling Isamaa fraktsioonAI Summary
Tõnis Lukas concluded his remarks by referring to the plans and activities for the coming years, stressing the long-term perspective, but leaving the details unspecified.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar offered his thanks and then handed the floor over to the Prime Minister.
Peaminister Kristen Michal
AI Summary
Prime Minister Kristen Michal announced that the Prime Minister would not hold negotiations with the Association of Cities and Rural Municipalities, promising a written response on the matter. She also confirmed that the teacher salary increase has been widely covered, noting that the minimum salary will be raised by an average of 8% and the differentiation fund by 2%. The details of these changes are outlined in the budget and are subject to further specification by the Minister of Education.
Peaminister Kristen Michal
AI Summary
Prime Minister Kristen Michal explained that while he couldn't comment precisely on the Prime Minister’s negotiations with the Association of Cities and Municipalities, he confirmed the teachers' salary increase. He noted that the minimum salary would rise by an average of 8% and the differentiation fund by 2%, adding that all the details are laid out in the budget and the Minister of Education can describe them more precisely.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar concluded today's information session because, due to the absence of several Riigikogu members, including Kalle Grünthal, Jaak Valge, and Aleksandr Tšaplõgin, it was not possible to address the subsequent agenda items, from the ninth through the thirteenth. He thanked the participants and announced that the plenary session would resume precisely at two o'clock.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar concluded the information hour after addressing the eighth question, as the absence of several Riigikogu members made it impossible to open agenda items nine through thirteen. He thanked the members of the government and the Riigikogu for their active participation and announced that the plenary session would resume exactly at two o'clock.