State Budget Revenues and Expenditures
Session: 15th Estonian Parliament, third sitting, information briefing
Date: 2024-04-10 15:01
Participating Politicians:
Total Speeches: 12
Membership: 15
Agenda Duration: 14m
AI Summaries: 12/12 Speeches (100.0%)
Analysis: Structured Analysis
Politicians Speaking Time
Politicians
Analysis
Summary
The central topic of discussion remained the state budget situation and finding related measures: how to stabilize the economy and the budget through cost savings and additional revenues, and what role the costs associated with the relocation of the Health Insurance Fund play in this regard. It was also pointed out that the 2024 budget is currently being drafted, and that over the next four years, a significant amount of savings must be identified and the generation of additional revenue awaited, in order to stimulate the economy and accelerate investments.
Decisions Made 4
It was agreed that over the next four years, we need to find savings totaling 367 million euros, along with an expected additional revenue of approximately 114 million euros. These figures are already officially budgeted and have been published by the Ministry of Finance on its website.
Wage bills will be frozen in 2024, with the exception of teachers and healthcare professionals, in order to prevent new costs from arising and keep the budget stable.
By the end of August, the obligations remain unfunded, and under the budget strategy, resources will be channeled in such a way that these obligations are financed and investments (totaling 1.9 billion euros) stimulate the economy, supported by both European and state funds.
To streamline tax collection, close cooperation with the Tax and Customs Board will continue, IT solutions will be deployed to detect anomalies and non-compliance, and every expenditure will be evaluated for its alignment with the state budget's condition and requirements.
Most Active Speaker
The most active speaker is Aivar Kokk (ID VTIO4yVEz1k), who represents the right-wing political spectrum (right). He made a critical contribution, directing specific questions regarding the state budget and taxation issues, and emphasized the need to control expenditures and clarify the reasons for the costs associated with the relocation.
Aseesimees Toomas Kivimägi
AI Summary
The first question is addressed to the Minister of Finance, Mart Võrklaev, and it will be asked by our good colleague, Aivar Kokk.
Aivar Kokk
Profiling Isamaa fraktsioonAI Summary
Riigikogu member Aivar Kokk stresses that the Estonian economy has recently been on a downward trend and that it is necessary to find both savings and additional resources for the budget. He praises the Ministry of Finance for its cooperation in identifying areas for savings, but at the same time asks about the relocation of the Health Insurance Fund (Tervisekassa) and the associated costs, and why there is money hidden or written off in the budget that could cover 100–200 million and allow for raising teachers' salaries.
Rahandusminister Mart Võrklaev
AI Summary
Finance Minister Mart Võrklaev stated that, involving both the coalition and the opposition, they are seeking 367 million euros in savings over the next four years. Furthermore, approximately 114 million euros in additional revenue is planned. Wage bills are frozen in 2024 (with the exception of teachers and medical personnel), no new expenditures will be undertaken, and every existing expense will be reviewed. However, simultaneously, the 2024 budget includes a record 1.9 billion euros in investments, and commitments must be met by the end of August to rapidly channel the funds into the economy.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi asks Aivar Kokk to present a clarifying question.
Aivar Kokk
Profiling Isamaa fraktsioonAI Summary
Aivar Kokk stated that the decisions made by the Health Insurance Fund (Tervisekassa) must not proceed without a decision from the supervisory board, and the board must convene quickly in the event of any potential reallocation. He also highlighted the tens of millions in unpaid sums and the resulting unfair competition stemming from the violation of the mandatory biofuel blending requirement, adding that he has already raised this specific issue in the Finance Committee. He then asked whether this matter had recently been discussed with the head of the Tax Authority.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi thanks the audience.
Aivar Kokk
Profiling Isamaa fraktsioonAI Summary
Aivar Kokk said that this would be a pretty significant revenue stream for the state budget.
Rahandusminister Mart Võrklaev
AI Summary
Finance Minister Mart Võrklaev stressed that taxes must be paid equally by all, and tax avoidance must not constitute a competitive advantage. He emphasized that the Tax and Customs Board collects taxes very efficiently, utilizing IT solutions for detecting anomalies and ensuring precise responses. Furthermore, through the necessary legislative support and decisions made by the Riigikogu (Parliament), the goal is to guarantee tax payment, fair competition, and the required resources in the state budget for the benefit of Estonian society.
Aseesimees Toomas Kivimägi
AI Summary
Deputy Chairman Toomas Kivimägi invites Siim Pohlak to ask a follow-up question.
Siim Pohlak
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
Siim Pohlak emphasized that postponing or completely abandoning the elimination of the tax hump could cover a budget deficit of 400–500 million euros and avoid the imposition of new taxes. He then asked what would be worse for the average Estonian person if this step were delayed or canceled altogether.
Rahandusminister Mart Võrklaev
AI Summary
Finance Minister Mart Võrklaev emphasizes that reintroducing the tax kink would worsen the economy and people's lives. Therefore, we are continuing with the income tax reform, which will introduce a monthly 700-euro tax-free allowance for everyone. Simultaneously, the income tax rate will rise to 22% for higher earners, while labor taxes will be lowered, ensuring that people have more disposable income next year and the economy recovers faster.
Aseesimees Toomas Kivimägi
AI Summary
Vice-Chairman Toomas Kivimägi thanks the honorable Minister of Finance and announces that he is concluding the consideration of this matter.