Olukorrast riigis: Available loan money runs risk of foolish expenses

Hosts of
Hosts of "Olukorrast riigis" Harry Tuul and Andrus Karnau Source: ERR

A lot of available loan money does not necessarily equal sensible investments, looking at next year's state budget, hosts of the Raadio 2 "Olukorrast riigis" talk show found.

Harry Tuul said that according to his calculations, money planned for the 2021 state budget would run out by August without EU subsidies and the €2.3 billion loan Estonia will take. That said, support and loan money will see the budget grow by 10 percent compared to this year's, he said.

Tuul described fiscal deficit as a "clever move" practiced by the first government of Jüri Ratas (Center) the overspending of which saddled the next government with the deficit.

"But the next government was also Ratas', while efforts to dial back the deficit were disrupted by the crisis and now borrowing and spending run rampant," Tuul said.

Andrus Karnau said that a situation where the government has a lot of money to allocate brings with it the danger of foolish spending. He said that there are suddenly no limits and money starts ending up in random places, such as the recent decision to allocate a million euros for a church in Jõgeva County.

Tuul said that such decisions are understandable because an existing undertaking with a plan can be funded right away in a situation where 2+2 highways that require hundreds of millions of euros aren't even in the planning phase yet.

Karnau noted that the Center Party's political project of a €100 pension hike is also more or less on schedule and should be completed and constitute a fulfilled election promise after €35 hikes are included in the next two state budgets.


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Editor: Marcus Turovski

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