Finance minister: People must adjust consumption during inflation
Minister of Finance Keit-Pentus Rosimannus (Reform) told ERR on Wednesday that although inflation may continue next year, official estimates do not see it happening, which is why the Ministry of Finance cannot take the possibility into consideration when drawing up next year's budget.
Pentus-Rosimannus said when speaking of inflation that it will continue into next year, but significant growth is not expected. "When it comes to the entire wage situation, the decision of there not being a major wage increase in the public sector means the wage growth in the most sensitive sectors is significant," the finance minister said.
She pointed to the 12 percent increase to rescue workers' wages next year and the 7 percent increases to the wages of teachers and culture workers.
People must adjust their consumption
"Benefits are necessary for those that are in a truly complicated situation," Pentus-Rosimannus said on ERR's webcast "Otse uudistemajast" about why the government will not lower VAT on electricity. She added that it would not be fair to distribute money to the wealthy and those that need help equally.
At the same time, the finance minister noted that electricity prices are volatile and if the current price rate stays for longer, planned costs must be looked at and cuts and redistributions must be found.
"Everyone is looking at having to adjust consumption," Pentus-Rosimannus said.
She said it is normal that people will consume less and consider their electricity use more carefully.
The minister also pointed out that as of September, the state budget has already received 100 percent of the planned income tax from legal persons.
Pentus-Rosimannus said there is no divide in the government coalition of Reform and Center about one wanting to spend more and the other trying to save. She did criticize Tallinn mayor Mihhail Kõlvart (Center) and said the minister is constantly making decisions that are contrary to those of the government. "In this case, the children are victims," the finance minister said.
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Editor: Kristjan Kallaste