Minister: Inherited state budget cuts would see ministry expenses slashed

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Minister of Finance Keit Pentus-Rosimannus (Reform). Source: Ken Mürk/ERR

Several million worths of cuts have been entered in the state budget, but not carried out. The cuts, if implemented, would mean reducing the expenses of ministries by around half, new Minister of Finance, Keit Pentus-Rosimannus (Reform) told Vikerraadio show "Uudis+" Thursday.

"The budget and state finances as a whole are in a pretty bad shape - MPs have been talking about it for a long time," Pentus-Rosimannus said.

She explained that there is a gap of hundreds of millions in the state budget planned for the next three years. Pentus-Rosimannus added that the cuts planned for the next year stood at €260 million.

These cuts, if implemented, would mean reducing expenses of the ministries by half, the minister went on.

"It is important to come back to the general budget discipline principle," she said.

The minister explained that expenses are required that have to be thought out long-term and they have to be covered sustainably.

Taxpayer funds won't be directed towards producing oil shale energy

Pentus-Rosimannus also told the show that it is important to get out of the oil shale "trap", in order for Ida-Viru County to have new energy sector bases.

"Solving this can only happen, and will happen, with the representatives of the areas; I think it will have a great start," she added.

The government is not planning to make big investments into producing oil shale energy because it increases the carbon footprint.

"The whole climate and green deal block was the basis of a great debate between two parties," Pentus-Rosimannus said.

She said that new solutions should be found, which would be more climate-friendly.

At the same time, the previous administration opted to give €125 million to the new government to build a new oil factory. The new minister added that the future plans are not certain, however.

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Editor: Roberta Vaino

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