On the government's budget plans regarding stimulating the economy and people's purchasing power.
Session: 15th Riigikogu, 6th sitting, press briefing
Date: 2025-09-10 16:14
Participating Politicians:
Total Speeches: 25
Membership: 15
Agenda Duration: 12m
AI Summaries: 25/25 Speeches (100.0%)
Analysis: Structured Analysis
Politicians Speaking Time
Politicians
Analysis
Summary
The sixth question posed in the Riigikogu addressed the government's budget plans for boosting the economy and household purchasing power. The question was submitted by Riigikogu member Riina Solman (Isamaa) to Finance Minister Jürgen Ligi. Solman began the debate by discussing the impact of income tax exemption, arguing that the wealthier segment of the population benefits more from it. She then presented her main question, which concerned Education Minister Kristina Kallas's controversial and rather crude statement reported in the media regarding the state's supposed vast financial reserves. Solman sought to know how the Finance Minister would comment on this assessment and what magnitude of funds this sum represents in the budget.
Minister Ligi explained that Kallas's remark was the result of unfair journalistic conduct and actually reflected the minister's frustration during difficult budget negotiations, confirming that the state is, in fact, short of funds. Ligi also refuted Solman's earlier claim about tax relief, referring to studies showing that, for example, wealthier consumers benefit most from lowering the VAT on food, and the benefit tends to dissipate within the supply chain. In a follow-up question, Solman requested that Ligi reprimand the Minister of Social Affairs, who reportedly does not intend to utilize the funds remaining for child benefits—due to low birth rates—in the next fiscal year. Solman proposed that this money should instead be directed towards raising child benefits and single-parent benefits to 100 euros. Ligi replied that he cannot promise budget decisions that have not yet been finalized, but he emphasized the government's major tax relief measures (raising the tax-free minimum) and the exceptions made in the car tax for families with children (including incentives for M-category buses). Finally, Priit Sibul submitted an additional question regarding the calculation of the Health Insurance Fund's personnel costs and the payroll fund allocated for training and events. Ligi clarified that this constitutes a personnel cost, divided into salary costs and associated expenses, and considered the Health Insurance Fund case to be more of a moral issue than a financial one.
Decisions Made 1
No decisions were made
Most Active Speaker
Riina Solman (Isamaa party, right-wing) was an active participant in the questioning, presenting both the primary question and a substantive clarifying question-request concerning family policy.
Esimees Lauri Hussar
AI Summary
Riina Solman is posing a question to Finance Minister Jürgen Ligi concerning the government's budget plans for stimulating the economy and people's purchasing power.
Riina Solman
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Riina Solman debunks speculation regarding her background and sharply criticizes the government's tax policy, arguing that the planned amendments will benefit the wealthier segment of the population while low-income workers stand to lose. She then responded to Kristen Michal, pointing out that the issue of integrating women into the defense forces was initially raised by her own party colleague.
Riina Solman
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Riina Solman claims that the proposed changes primarily benefit the wealthier segment while low-wage earners lose out. She points to the income tax exemption and notes that almost all political parties support this stance when it comes to defense issues.
Riina Solman
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Riina Solman stated that the proposed change tends to favor the wealthier segment and unfortunately disadvantages low-wage earners. She also addressed the issue of income tax exemption and matters concerning the Defense Forces, noting that the possibility of women entering military service has been discussed and is supported by almost all political parties.
Esimees Lauri Hussar
AI Summary
The Chairman invites the audience to submit their questions.
Riina Solman
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Riina Solman asked the Minister of Finance how substantial the claim made by Kristina Kallas in the media—that the state has a lot of money—actually is, and what specific sum and budget line item it might be reflected under.
Riina Solman
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Riina Solman asks the Minister of Finance to assess and financially quantify the controversial claim presented in the media by her cabinet colleague Kristina Kallas, according to which the state has "a lot of money" (using a popular, uncensored expression), and asks which budget line this sum can be found on.
Esimees Lauri Hussar
AI Summary
Riina Solman thanks and commends the minister for clarifying the question, noting that this was done in writing.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi explains that lowering the VAT on food will not benefit the consumer; instead, it will disappear into the supply chain, only enriching the merchants. He also defended the Minister of Education, whose profane comment, made to a journalist in passing, actually reflected bitterness and the difficulty of budget negotiations, not financial abundance.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi criticized the inefficiency of reducing the VAT on food, emphasizing that the primary beneficiaries are wealthier consumers and merchants. He also came to the defense of the Minister of Education, whose uncensored comment—which expressed the frustration of budget negotiations—was unfairly published by a journalist. Ligi simultaneously confirmed that the state budget is running short of funds.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi argued that reducing the VAT on food primarily benefits wealthier consumers, adding that funds are tight and budget negotiations are tough. He also criticized the dishonest conduct of the Minister of Education and a Postimees journalist.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar expresses his thanks, notes that Riina Solman finally managed to press the button, and asks Riina Solman for a clarifying question.
Riina Solman
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Riina Solman is appealing to the Minister of Finance, requesting that he call the Minister of Social Affairs to order. The latter does not intend to use the funds remaining from subsidies designated for families with children—a surplus resulting from the low birth rate—in the upcoming budget year. The speaker stresses that this money is needed to improve the financial well-being of families and to send a signal of state support. She proposes using the surplus to raise both child benefits and single-parent benefits from 80 euros to 100 euros, referencing an earlier initiative by the Isamaa party.
Riina Solman
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Riina Solman is asking the Minister of Finance to call the Minister of Social Affairs to order and to use the state's surplus funds in the next budget year to raise the child allowance and the single parent allowance from 80 to 100 euros, in line with Isamaa's 2022 draft legislation.
Riina Solman
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Riina Solman is appealing to the Minister of Finance, requesting that he call the Minister of Social Affairs to order, as the latter is refusing to utilize family support funds that remained unused due to low birth rates in the next fiscal year. She demands that this surplus be channeled toward supporting families, for instance, by raising the child allowance and single-parent allowance from 80 euros to 100 euros, in order to send a positive signal from the state to families.
Riina Solman
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Riina Solman has appealed to the Minister of Finance, requesting that the Minister of Social Affairs be called to order. The Social Affairs Minister plans to leave unused the family support funds that were left over in the next fiscal year due to low birth rates. Solman demands that this sum be redirected instead to raising child benefits and single-parent benefits to 100 euros, in order to provide families with the necessary support and send a positive signal regarding state support.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi criticized the debate for focusing on third-party narratives and stressed that the government has made significant decisions. He pointed to the substantial increase in the tax-free minimum as a broad tax cut, along with the exceptional car tax refund or relief provided to families with children, including those owning larger M-category vehicles. He emphasized that the primary goal of tax collection is the provision of services (such as education and healthcare), not simply handing out cash, noting that Estonia has been a very generous country to its citizens when it comes to services.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi stated that Estonian tax policy will increase the tax-free minimum and provide car tax relief for families with children (including for 8–9-seater buses). He also stressed that taxes are primarily returned to the people in the form of services, particularly in education, children’s healthcare, and extracurricular activities.
Esimees Lauri Hussar
AI Summary
Colleague Priit Sibul asks a follow-up question.
Priit Sibul
Profiling Isamaa fraktsioonAI Summary
Priit Sibul asked whether the expenses for training courses and three events—a summer night gathering, a Christmas party, and an educational event—at the Health Fund are calculated as part of the wage fund, whether this is considered a reasonable salary supplement, and whether this approach will continue when preparing future budgets.
Priit Sibul
Profiling Isamaa fraktsioonAI Summary
Priit Sibul expressed surprise to the Minister regarding the change in his previous position, asking whether he truly considers it reasonable that, following layoffs at the Health Insurance Fund (Tervisekassa), expensive events (such as the summer night and Christmas parties) intended to motivate employees are also factored into the increased salary fund, and whether treating these benefits, which are subject to fringe benefit tax, as part of the salary will become the new norm when compiling ministry budgets in the future.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi clarified the terminology, explaining that personnel expenditure encompasses salary costs and associated expenses (such as training), and stressed that while the training of Health Insurance Fund employees is necessary and must fit within the existing budget, this issue—which can be resolved internally within the budget—nor the previous "pompous summer days," should be the main topic of discussion for the Riigikogu, as this is a matter of management responsibility and morale, not a nationally decisive issue.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi stated that the correct term is personnel expenditure (salary and associated costs), and increasing associated costs, including training, could reduce the core personnel cost, but he does not consider this the most crucial issue for Estonia, and emphasized that training must be financed within the existing budget, with the responsibility resting with the managers.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi explained that the correct term is personnel cost, which also includes associated expenses such as training, and emphasized that although the need for training for the professional staff of the Health Insurance Fund is logical and justified, a detailed discussion of individual budget sub-sections should not rise to become the most important topic for the Riigikogu, but is rather a matter of management responsibility and choices.
Esimees Lauri Hussar
AI Summary
The Chairman thanked the audience and announced that he was concluding the consideration of today's sixth question.