The 400 million euro expense line item written into RES
Session: 15th Riigikogu, 3rd sitting, information briefing
Date: 2024-01-10 15:20
Participating Politicians:
Total Speeches: 14
Membership: 15
Agenda Duration: 13m
AI Summaries: 14/14 Speeches (100.0%)
Analysis: Structured Analysis
Politicians Speaking Time
Politicians
Analysis
Summary
The Riigikogu debate centered on a question put to Prime Minister Kaja Kallas concerning the €400 million revenue line included in the State Budget Strategy (RES). Priit Sibul (Isamaa) cast doubt on the reliability of the RES, pointing out that the government had included an unspecified line item, which Finance Minister Mart Võrklaev later announced would be removed. Sibul also asked about the possible cancellation of the car tax. Prime Minister Kallas explained that this was a revenue line that needed to be substantiated for the 2025 budget. Kallas highlighted four possible solutions: additional taxes, areas for savings (cuts), shifting the budget deficit criterion, or a combination thereof. She emphasized that the Reform Party's position is rather to look for areas of savings, as the public is not ready to accept new taxes. Kallas noted that canceling the car tax (€200 million) would increase the required sum to €600 million. Rain Epler (EKRE) asked whether the understanding that the public would no longer tolerate tax increases was a broader coalition consensus. Kallas confirmed that the Reform Party prefers cuts, but the coalition partners hold different views. She defended the necessity of tax increases, citing defense spending of 3% of GDP and the need to raise public sector wages, and blamed the depletion of state reserves since 2016.
Decisions Made 1
No decisions were made
Most Active Speaker
Priit Sibul posed the initial question and a clarifying question, keeping the debate focused on the government's financial strategy. His position is right-wing.
Esimees Lauri Hussar
AI Summary
Today’s sixth question, submitted to Prime Minister Kaja Kallas by Riigikogu member Priit Sibul, addresses the 400 million euro expenditure line item written into the RES.
Priit Sibul
Profiling Isamaa fraktsioonAI Summary
Priit Sibul is questioning how seriously the state budget strategy is being treated, noting that the 400 million euro line item proved to be void and needs to be removed. He further observes that the new taxes discussed over the past three months—including the car tax and the planned issuance of bonds—demonstrate the instability of this strategy.
Peaminister Kaja Kallas
AI Summary
Prime Minister Kaja Kallas stated that the 400 million euros must be covered through four options: additional taxes, cost savings, changing the budget deficit criteria, or a combination of these. She added that although they do not want to ask for additional payments, the money must be found, and following the agreement on the car tax, they must find the funding and reach an agreement for the 2025 budget by summer.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar thanks [the previous speaker/the floor] and asks Priit Sibul to pose a clarifying question.
Priit Sibul
Profiling Isamaa fraktsioonAI Summary
Priit Sibul acknowledges that the 400 million revenue line was mistakenly confused due to being described as an "expenditure line," recalls the 150 million saving and the 50 million proposal, and asks whether, based on all these nuances, the tax might increase if an agreement is reached, despite Võrklaev's claim that there will be no taxes.
Peaminister Kaja Kallas
AI Summary
Prime Minister Kallas confirmed that the coalition has 150 million euros earmarked for budget revision, and a thorough review of the ministries will help identify areas for savings. At the same time, the necessity of a tax increase is being discussed, and abolishing the car tax would mean another 200 million on top of the 400 million already planned, totaling 600 million. However, last year, savings amounting to approximately 500 million euros were achieved.
Esimees Lauri Hussar
AI Summary
Now is your time.
Peaminister Kaja Kallas
AI Summary
He points out that the discussion usually tends to end there.
Esimees Lauri Hussar
AI Summary
The Chairman thanks [the previous speaker] and calls upon Rain Epler to ask an additional question.
Rain Epler
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Rain Epler stresses that the expenditure-revenue question is rather semantic, and although the Reform Party emphasizes balance, the debt burden has grown. He asks whether Mart Võrklaev's understanding of tolerating tax hikes has also expanded to the same position within the coalition and the government.
Peaminister Kaja Kallas
AI Summary
Prime Minister Kallas stated that a tax hike is necessary to cover state expenses, and while dedicating 3% of GDP to security is a promise made by all parties, the government must find additional revenue streams and areas for savings to avoid burdening taxpayers with higher taxes and more debt, because hard times have arrived and the reserves have been depleted.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar announced that today's discussion of the sixth question is concluded, and Rain Epler now has a question regarding the rules of procedure for the sitting.
Rain Epler
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Rain Epler refers to the broader handling of political procedures and claims that Jüri Ratas is to blame for everything, and he asks the session chair if he hasn't found a new party because nobody wants him.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar told Rain Epler that this is not a matter concerning the rules for conducting today's session, and that he understands this perfectly well himself, and now we truly need to move forward swiftly.