Decision on public sector cuts can be expected in autumn ({{contentCtrl.commentsTotal}})

Government press conference on the coronavirus emergency situation on Friday.
Government press conference on the coronavirus emergency situation on Friday. Source: Priit Mürk/ERR

The government has made no decisions on budget revision for 2020-2021 despite deliberating on the topic for around a month, the finance ministry says. Prime Minister Jüri Ratas (Center) promises decisions soon, however.

Ratas said at a government press conference on Thursday, May 29 that the government is to come back to the subject of the cuts of the budget revision when the summer forecasts have been made, meaning in August or September.

"In any case, we are going to make savings and cuts next year. In this economic situation, it is vital to show solidarity to families and the private sector," he said.

"The state, however, always needs to act countercyclically in recessions. We can take investments to the market and it means smart recovery, smart investments, reasonable investments and Research and Development (R&D)," Ratas continued.

The prime minister also said that the government is to look over information provided by the economic affairs ministry and Minister of Public Administration Jaak Aab (Center), covering projects the state can direct funding from, towards construction procurements.

The content of next year's draft state budget, and plans for the next four years, will be decided on by the government by the end of September at the latest, the finance ministry told ERR.

According to the ministry, the aim of the state budget audit is to make the taxpayers' usage of money as efficient as possible, and to release funds in the state budget to achieve new important goals.

The government has decided that the state budget review must constitute part of the annual state budget process.

For the first time, the state budget for 2020 will be fully activity-based, meaning it will consist of sectoral programs, which will, according to the ministry, help to facilitate the state budget audit.


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Editor: Roberta Vaino

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