Budget
Session: The 15th Riigikogu, 6th Session, Information Hour
Date: 2025-10-08 16:40
Participating Politicians:
Total Speeches: 12
Membership: 15
Agenda Duration: 12m
AI Summaries: 12/12 Speeches (100.0%)
Analysis: Structured Analysis
Politicians Speaking Time
Politicians
Analysis
Summary
Today’s information session focused on the eighth question, which was posed to Prime Minister Kristen Michal by Riigikogu (Parliament) member Urmas Reinsalu (Isamaa party) regarding the state budget. Reinsalu sharply criticized the government's draft budget, calling it "paltry" and irresponsible (a budget based on the principle of "after us, the deluge"). He accused the government of financing the abolition of the Reform Party's tax hump using borrowed money, which will lead to the deficit persisting until 2070. Reinsalu demanded a reduction in governance expenditures, highlighting that, according to his calculations, these costs (personnel costs, operating expenses, and non-statutory subsidies) have actually increased by 1.9 billion euros between the 2024 and 2026 budgets, rather than decreasing, as the Prime Minister had promised.
Prime Minister Michal defended the budget, emphasizing that it is a "very good budget" thanks to historically high defense spending (5% of GDP) and the largest tax rate reduction (the abolition of the tax hump), which leaves more money in people's hands. He disputed Reinsalu's figures, noting that cuts totaling 1.4 billion euros have already been made, with more to come. Michal accused Reinsalu of arbitrarily manipulating figures and demanded specific proposals for cuts. In a follow-up question, Reinsalu demanded specific line items from the 2026 budget that would prove the 1.4 billion euro savings in governance expenditures, and criticized specific spending (e.g., the establishment of bogs, the construction of a new building for environmental agencies). Finally, Tõnis Lukas asked about agreements with local governments regarding teacher salary increases and the career model, to which Michal replied that a salary increase is planned, but details must be requested from the Minister of Education. The information session ended prematurely because the members scheduled to ask the subsequent questions were absent from the hall.
Decisions Made 1
No decisions were made
Most Active Speaker
Urmas Reinsalu (Isamaa, right-wing) was the most active questioner, leveling sharp criticism at the government's budget policy and the alleged increase in administrative costs, while demanding specific answers from the Prime Minister regarding where the cuts would be made.
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.
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.
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.
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 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.
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.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar concluded his address, thanked the audience, 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.
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.