The 2024 Report by the Minister of Finance on the implementation of the state's long-term development strategy "Eesti 2035" (including an overview of public service development trends in 2022 and 2023)
Session: 15th Riigikogu, 3rd session, plenary session.
Date: 2024-05-08 22:15
Participating Politicians:
Total Speeches: 24
Membership: 15
Agenda Duration: 1h 3m
AI Summaries: 24/24 Speeches (100.0%)
Analysis: Structured Analysis
Politicians Speaking Time
Politicians
Analysis
Summary
The first item on the agenda concerned the Minister of Finance's 2024 report on the implementation of the state's long-term development strategy, "Eesti 2035," which included an overview of public service development trends for 2022–2023. The report centered on fiscal sustainability and macroeconomic balancing, aiming to establish a stable and predictable budget and secure resources for state investments. Among other things, it highlighted the importance of European Union support funds and the need to find the optimal synergy between various funding sources, ensuring that the goals of "Eesti 2035" are not merely articulated in theory but receive tangible financing opportunities. Furthermore, priorities related to eight cross-cutting themes were emphasized—ranging from education and science to energy and the green transition—stressing the importance of timing and collaborative engagement both within Estonia and among European Union institutions.
The second item on the agenda adopted a broader focus, concentrating on the 2023 development trends of the public service and key factors in personnel management: employee numbers, wage policy, turnover, and training. Discussions addressed how to maintain a balanced, competent, and motivated workforce within state service, taking into account demographic shifts and an aging population, and how to reduce bureaucracy and enhance service accessibility through government service centers (riigimajad), improved cooperation flows, and the strengthening of regional presence. Key figures were also presented: 28,301 public service employees in 2023, an average gross salary of 2,377 euros, and statistics on turnover and training, which indicate a necessity to reinforce the continuous professional development and ethics of civil servants.
Decisions Made 1
No decisions were made at this session; a preparatory discussion was held and guidelines were established for future negotiations and budget streamlining, but concrete, binding decisions will be adopted later during the course of those discussions.
Most Active Speaker
The most active speaker was Urmas Reinsalu, a member of the Isamaa faction; position: right-wing (opposition). In his address, he advocated for a strong, critical, scrutinizing, and purposeful focus regarding both the budget correction and the changes to the tax structure, emphasizing the need for swift action and accountability.
Esimees Lauri Hussar
AI Summary
The Riigikogu will discuss the Minister of Finance’s 2024 report on the implementation of the Estonia 2035 long-term development strategy and the development trends of the public service for the years 2022–2023. The report will be presented by Mart Võrklaev, and the presentation length is limited to 20 minutes.
Rahandusminister Mart Võrklaev
AI Summary
Finance Minister Võrklaev expresses his thanks and requests ten additional minutes, as he has two topics to cover.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar requests an additional ten minutes, noting that the total time would be 20 plus 10 minutes.
Rahandusminister Mart Võrklaev
AI Summary
Finance Minister Mart Võrklaev stated that Estonia is moving towards a sustainable budget and deficit reduction by implementing the Estonia 2035 strategy, supported by EU funds and tax revenue. This involves investing in education, research and development, energy, and the green transition sectors, while simultaneously improving state budget management and the efficiency of public service.
Esimees Lauri Hussar
AI Summary
The Chair thanks the Minister, announces that there are questions, and asks Urmas Reinsalu to put those questions.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu accuses the Finance Minister of causing the financial crisis and asks why the coalition voted down Isamaa's proposals for maintaining the 3% debt burden, and why yesterday's negative budget and the proposal made in the autumn during the preparation of the 2024 budget to reduce government expenditures by 0.5% of GDP were rejected—measures which, according to the spring forecast, would have maintained the 3% limit.
Rahandusminister Mart Võrklaev
AI Summary
Finance Minister Mart Võrklaev stated that the government is taking action: it implemented tax changes, increased defense spending, amended the 2024 budget, and is planning a negative supplementary budget, complete with concrete savings measures, in order to get the budget in order and reduce the deficit.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar thanked Urmas Reinsalu, informed the assembly that there were no further questions, opened the discussions, and asked Urmas Reinsalu, on behalf of the Isamaa faction, to present clarifications and request three minutes of additional time.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu asserts that the Estonian government is driving the nation's finances toward a crisis and the budget deficit has spiraled out of control. He calls for the immediate limitation of expenditures, the halting of tax hikes, and the containment of the deficit, simultaneously demanding concrete answers and actions from the prime minister and the finance minister.
Esimees Lauri Hussar
AI Summary
The Chair thanked everyone and announced that before inviting the next speaker, there was a procedural question regarding the conduct of the session, and then called upon Annely Akkermann.
Annely Akkermann
Profiling Eesti Reformierakonna fraktsioonAI Summary
Annely Akkermann points out that during debates on political issues, speakers are no longer addressing matters from the perspective of their own faction, but rather on behalf of specific individuals. She then asks whether this constitutes an *ad hominem* approach and if it might become a new norm in the Riigikogu plenary session.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar stated that although there have been sharp remarks in the Riigikogu, it is necessary to maintain respectful language; he did not intervene and invited Madis Kallas to deliver a speech on behalf of the Social Democratic Party faction.
Madis Kallas
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Madis Kallas emphasized that the focus of the presentation was on the implementation of the Estonia 2035 development strategy and the evolution of the public service. He highlighted the problem of regional funding distribution (specifically the large proportion allocated to Harju County), the necessity for Riigi Kinnisvara AS (State Real Estate Ltd) and Riigi Tugiteenuste Keskus (State Shared Service Centre) to better execute their roles, and the need to address salary concerns and reduce employee turnover, requesting three additional minutes.
Aseesimees Toomas Kivimägi
AI Summary
Deputy Chairman Toomas Kivimägi requests three additional minutes.
Madis Kallas
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Madis Kallas stressed the development of cooperation models, the necessity of breaking down organizational silos, boosting the regional presence of the state, and improving the accessibility of public services in all counties through IT and remote work, while taking into account wage disparities and the role of regional government centers (or ‘state houses’).
Aseesimees Toomas Kivimägi
AI Summary
Deputy Speaker Toomas Kivimägi thanked the rapporteur and announced that Maris Lauri was requesting three minutes of additional time on behalf of the Reform Party faction.
Maris Lauri
Profiling Eesti Reformierakonna fraktsioonAI Summary
Maris Lauri said that the budget, in its current state, is an emergency—a fire that needs to be extinguished immediately. This requires an uncompromising search for new revenue streams and aggressive cost-cutting, a review of the expediency of European Union funds, and, if necessary, the preparation of a supplementary budget this year of approximately 200 million euros to ensure financial stability and prevent deeper losses.
Aseesimees Toomas Kivimägi
AI Summary
In the closing statement, a request was made for Finance Minister Mart Võrklaev to participate in the negotiations.
Rahandusminister Mart Võrklaev
AI Summary
Finance Minister Mart Võrklaev stated that Isamaa’s words lack action, and reminded that the meanings inherent in Estonia 2035 include sustainability and preserving the buffers collected during good times. He recalled the increase in expenditures and the budget deficit incurred between 2016 and 2023, and called for concrete actions, including abolishing the tax hump and stimulating the economy. According to the Bank of Estonia, these measures would increase people’s purchasing power (for instance, a teacher’s net salary would increase by about 113 euros next year) and help bring the state budget into order.
Aseesimees Toomas Kivimägi
AI Summary
He notes that while it is customary for negotiations to conclude with the Minister's address, a response is nevertheless something that should not be denied, and he requests a reply from Urmas Reinsalu.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu stated that prior to the coronavirus crisis, the state's consolidated reserves were essentially equal to the national debt, meaning the government could have used those reserves to repay the loan. He stressed the necessity of increasing defense expenditures and considering the issuance of national defense bonds, in accordance with the recommendations made by the Commander of the Defense Forces. Furthermore, he defended the Ministry of Foreign Affairs' budget, which saw an increase in 2020 due to Estonia’s membership in the UN Security Council and its presidency. He finished by posing the question of how much money remains genuinely unused and what the overall perspective is on these financing matters.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi expressed his gratitude.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu said that he criticized something, but he received no response.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi announces that the negotiations have concluded and the consideration of this agenda item is finished.