Inquiry regarding the deepening revenue gap among local governments (no. 675)
Session: 15th Riigikogu, 5th sitting, plenary session
Date: 2025-02-10 18:24
Participating Politicians:
Total Speeches: 16
Membership: 15
Agenda Duration: 18m
AI Summaries: 16/16 Speeches (100.0%)
Analysis: Structured Analysis
Politicians Speaking Time
Politicians
Analysis
Summary
The Riigikogu’s second item on the agenda addressed the deepening gap in municipal revenues, a question submitted to the Riigikogu on December 12th of last year. The questioners were Lauri Laats, Aleksei Jevgrafovi, Vadim Belobrovtsev, and Vladimir Arhipov; the topic concerns the growth of regional inequality and its impact on local municipalities. Initially, the aim was to clarify long-term strategies for reducing the gap and ensuring sustainable administrative and regional policy that would foster more even development across Estonia. The second part of the agenda item included the government’s responses, delivered from the Riigikogu’s speaker's chair, and covered the distribution of investments, education reforms, vocational education, and the financial autonomy of local municipalities to better fund regional development activities. A common theme was also how European funds and national mechanisms could reduce the gap and increase service accessibility across Estonia.
In addition, the sustainability of the administrative reform and the encouragement of mergers were also discussed: the government announced a plan to promote voluntary mergers and to provide guidelines to ministries and budget compilers for further changes for 2026–2029. There was also some discussion on the motives for local municipal revenues and taxation, and how to ensure that differences do not deepen in the future. Overall, the agenda expresses a priority of ensuring regional equality and the continued discussion and implementation of relevant measures at the state level.
Decisions Made 2
The government has decided to fundamentally support mergers and to promote voluntary municipal mergers.
The Regional Affairs and Agricultural Ministry was tasked with developing draft amendments to laws and submitting them to the Riigikogu for consideration; it must also prepare proposals regarding the promotion of mergers within the wording of the state budget strategy for 2026–2029.
Most Active Speaker
The most active speaker on this agenda item is Lauri Laats (id 5VNfkRwGZMI). He represents the beneficiaries' association and presented two key questions regarding the government's actions to reduce regional inequality. His position in this context is described as other (doesn't openly fall under a left- or right-wing political affiliation).
Esimees Lauri Hussar
AI Summary
Today's agenda item deals with the parliamentary inquiry submitted on 12 December last year about the widening gap in municipalities' revenues, which is presented in the Riigikogu by colleague Lauri Laats.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
Lauri Laats highlighted in his speech the deepening gap in local government revenues, noting that the per-capita revenue gap was 2.5 times in 2021 and is 4.6 times today, pointing to an inadequate regional policy, and he asked the prime minister three questions.
Esimees Lauri Hussar
AI Summary
Speaker Lauri Hussar requests that the Riigikogu's speaking podium be returned to Prime Minister Kristen Michal in order to answer the interpellation.
Peaminister Kristen Michal
AI Summary
To reduce regional inequality, the government plans to steer economic development away from Tallinn and Tartu, ensure affordable and clean electricity across Estonia, use EU structural funds to create conditions that promote regional balance, improve education and vocational education, increase the financial autonomy of municipalities and promote voluntary mergers, in order to provide similar services in all municipalities, and continue the synchronization of energy infrastructure and the Continental European grid together with the construction of Rail Baltica.
Esimees Lauri Hussar
AI Summary
The chair thanks the minister and states that there are questions that the colleague Lauri Laats asks first.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
Lauri Laats speaks before the Estonian Parliament about the need to find a broader vision for local governments, how to ensure services and halt the outflow of residents from large cities, and asks whether administrative reform or stronger state intervention is the solution.
Peaminister Kristen Michal
AI Summary
The Prime Minister said that although the capital regions are large centers of attraction and the Estonian SKP per capita is comparable with that of the neighbours, one should weigh whether the services offered by the large cities attract taxpayers to Tallinn, or whether, across Estonia, a sensible arrangement of living should be ensured.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar asks Anastassia Kovalenko-Kõlvarti to come on stage.
Anastassia Kovalenko-Kõlvart
Profiling Eesti Keskerakonna fraktsioonAI Summary
Anastassia Kovalenko-Kõlvart thanked the prime minister, stating that the Reform Party does not want free public transport in the capital, and highlighted a National Audit Office report on the care reform, in which it notes uncontrolled cost growth and risks, as well as unequal distribution of additional funds to municipalities and non-compliance with the reform goals, and asked whether the report has been reviewed by the government and whether the system should be reconsidered.
Peaminister Kristen Michal
AI Summary
Prime Minister Kristen Michal said that paid transport is not free and that someone would pay for it, and the Tallinn experiment would pay more than 200 euros to pensioners and infants, and it was an expensive experiment whose quality did not meet expectations and which has now caused the Centre Party to suffer a collapse, and the social sector report will be presented in the government, and if proposals are submitted to the Social Committee, they will be discussed further.
Esimees Lauri Hussar
AI Summary
The chairman invites Andrei Korobeiniku onto the stage.
Andrei Korobeinik
Profiling Eesti Keskerakonna fraktsioonAI Summary
Korobeinik expressed concern that the Reform Party could abolish free public transport in Tallinn and bring it into a regional policy, for example by promising free bus service in Pärnu County so that people from Tallinn would go there, and asked whether the prime minister and the party still believe that Tallinn must have free transport.
Peaminister Kristen Michal
AI Summary
Prime Minister Kristen Michal notes that although there has recently been criticism of the Centre Party's actions, he believes in the government's work, and that regional policy and development—in modern industry, in well-functioning networks and quality services—create for everyone in Estonia the opportunity to freely create wealth, and emphasizes that it cannot be "free" if taxpayers' money has actually been used.
Esimees Lauri Hussar
AI Summary
The Speaker Hussar thanks and announces that the questions have ended, and opens negotiations, and asks the representative of the inquirers, Lauri Laatsi, to return to the Riigikogu rostrum.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
Lauri Laats notes that although Tallinn's public transport has become free, its quality has not improved, and regional policy is ineffective due to competition among local governments and the car tax, and he calls on the government and the minister to take concrete steps to implement the Centre Party's programme in light of a study by the Centre for Development Monitoring.
Esimees Lauri Hussar
AI Summary
The chair thanked, there were no requests to speak, the prime minister did not wish to speak, and the consideration of today's second agenda item was terminated.