First Reading of the Draft Act amending the State Budget Act (391 SE)

Session: 15th Riigikogu, 3rd plenary sitting

Date: 2024-03-12 12:16

Total Speeches: 13

Membership: 15

Agenda Duration: 21m

AI Summaries: 13/13 Speeches (100.0%)

Analysis: Structured Analysis

Politicians Speaking Time

Politicians

Analysis

Summary

The agenda item concerned the first reading of Draft Act 391 on Amendments to the State Budget Act, which was initiated by the Riigikogu Finance Committee. The main objective of the draft act is to ensure greater budgetary independence from the executive power for constitutional institutions (the Riigikogu, the President of the Republic, the National Audit Office, the Chancellor of Justice, and the Supreme Court). Annely Akkermann, Chairman of the Finance Committee, explained that the current budget process is overly executive-centric, which has created problems, particularly regarding the lag in salary levels and the potential political pressure exerted on institutions whose duty it is to oversee the executive power.

The proposed solution stipulates that the budget requests of constitutional institutions (excluding investments related to real estate) must be approved by the Riigikogu Finance Committee before the draft state budget is initiated in the Riigikogu. Although the Government of the Republic retains the right and obligation to assess the requests and submit a dissenting opinion, the volume approved by the Finance Committee is mandatory for the government to include in the draft state budget. This compromise proposal, which is the result of long-term discussion and consultation with constitutional institutions, should resolve the autonomy issue while ensuring that the government can present a balanced budget.

Decisions Made 3
Annely Akkermann
Annely Akkermann Eesti Reformierakonna fraktsioon

The Lead Committee (the Finance Committee) reached consensus on the proposal to initiate the draft bill, place it on the plenary session agenda, and conclude the first reading.

Collective Decision

The Riigikogu Plenary Assembly decided to conclude the first reading of Bill 391.

Collective Decision

The deadline for submitting amendments was set for March 26th at 5:15 PM.

Most Active Speaker
Annely Akkermann
Annely Akkermann

Eesti Reformierakonna fraktsioon

Annely Akkermann was the most active speaker, presenting the draft legislation in her capacity as Chairwoman of the Finance Committee. She provided a detailed explanation of the bill's substance, its goal of ensuring the budgetary autonomy of constitutional institutions, and outlined the lengthy procedural process focused on achieving a compromise. Akkermann emphasized that the proposed solution is a compromise designed to resolve the problem where institutions that oversee the executive branch were required to hold budget negotiations with the very entities they control. She spoke in her role as the chair of the lead committee, presenting a consensus proposal.

Aseesimees Toomas Kivimägi
12:16:40
AI Summary

The second item on the agenda is the first reading of Draft Act 391 on Amendments to the State Budget Act, initiated by the Finance Committee. The rapporteur is the Chairman of the Finance Committee, Annely Akkermann.

Annely Akkermann
Annely Akkermann
Profiling Eesti Reformierakonna fraktsioon
12:16:53
AI Summary

Annely Akkermann introduced the bill, which was initiated in the Finance Committee and aims to enhance the Riigikogu’s role in the budget decisions of constitutional institutions and guarantee their greater independence, outlining the procedural timeline and deadlines.

Aseesimees Toomas Kivimägi
12:26:00
AI Summary

Deputy Speaker Toomas Kivimägi thanks the floor and invites Jaak Aab to ask at least one question.

Jaak Aab
Jaak Aab
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmed
12:26:02
AI Summary

Jaak Aab stated that investments related to immovable property have been excluded from the draft bill, noting that this topic had been thoroughly discussed in the committee, while simultaneously asking what the arguments were for omitting the investment portion.

Annely Akkermann
Annely Akkermann
Profiling Eesti Reformierakonna fraktsioon
12:26:21
AI Summary

The state already has a separate procedure for the discussion, handling, and processing of real estate investments, and there is no reason to create a parallel procedure for constitutional institutions.

Aseesimees Toomas Kivimägi
12:26:44
AI Summary

Margit Sutrop is asked to speak at the beginning of the talk.

Margit Sutrop
Margit Sutrop
Profiling Eesti Reformierakonna fraktsioon
12:26:46
AI Summary

Margit Sutrop asks what questions have been discussed regarding the budgets of constitutional institutions, what positions the institutions have presented, and whether a compromise proposal has been reached or if further discussion is still required.

Annely Akkermann
Annely Akkermann
Profiling Eesti Reformierakonna fraktsioon
12:27:20
AI Summary

Annely Akkermann stated that the current draft bill represents a compromise, whereby the Riigikogu debates the budgets of constitutional institutions before the government's budget is submitted, and the outcome of these discussions is binding on the government, which must then find the necessary funding to ensure the budget remains balanced.

Aseesimees Toomas Kivimägi
12:30:50
AI Summary

Toomas Kivimägi gives thanks, announces that the questions have concluded, opens the discussions, and acts on behalf of and under the authorization of the Social Democratic Party faction, addressing his colleague Jaak Aab.

Jaak Aab
Jaak Aab
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmed
12:30:52
AI Summary

This bill aims to bring greater inclusion into the final decisions of constitutional institutions during the drafting of the state budget and ensure greater budgetary independence for them. This is because the current system is primarily executive-centric and has generated criticism regarding salary costs, notably in 2021.

Aseesimees Toomas Kivimägi
12:31:02
AI Summary

He is asking for three more minutes.

Jaak Aab
Jaak Aab
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmed
12:31:04
AI Summary

Jaak Aab emphasizes that freezing personnel costs in constitutional institutions creates significant wage disparities and competitive pressure on the labor market. Furthermore, he states that the Riigikogu Finance Committee should be involved in the state budget process for the review of supplementary applications—this is a bill that the Social Democratic Party faction has supported and which they hope will be passed into law.

Aseesimees Toomas Kivimägi
12:38:16
AI Summary

Toomas Kivimägi announced that the first reading of draft bill 391 has been concluded, there are no further requests to speak, and the debate is therefore closed. The deadline for submitting amendments is 17:15 on March 26th of this year, and the proceedings concerning the second item on the agenda have been finalized.