Speaking to ETV politics head-to-head show "Esimene stuudio," Võrklaev said: "95 percent of the supplementary budget has been agreed on, and there aren't many issues left to resolve."

As to host Mirko Ojakivi's question whether the cuts had been as harsh as Eesti 200 leader and Foreign Minister Margus Tsahkna had desired, Võrklaev said: "The supplementary budget cuts will not be harsh; they represent mid-year savings measures which will ensure the efforts we made last year to balance the budget and put state finances on a sustainable path will continue."

"We can make these decisions, taking into consideration the ideological expectations or readiness of all coalition partners to save," he continued.

"We are doing just enough to stay within the budgetary rules, aiming to keep the budget deficit at around 2.9 percent, which we had in place for 2024, while now we are trying to reach three percent. The task we've set for ourselves and that I presented to the coalition partners was minimal, yet feasible, and achievable within a month. So there were some decisions, then the matter is settled," the minister continued.

The cuts in the supplementary budget, issued in response to the ongoing economic picture, amount to nearly €100 million, while revenues will rise by approximately €75 million.

Võrklaev said the cuts cover personnel and operating costs at all the ministries, save for the defense ministry, adding he has tried to accommodate as many coalition partners' wishes as possible within the supplementary budget.

"When we reviewed the initial plan two weeks ago, the Social Democrats said that cutting municipal revenues midway through the year might be too abrupt, and perhaps not feasible," the minister went on.

"So we considered that, and struck it off. Eesti 200 was concerned that the teachers' wage funds as allocated to local municipalities shouldn't be included in the Ministry of Education's savings targets, so we removed that as well, having discussed it."

Võrklaev dismissed criticisms that the government is cutting costs arbitrarily.

The regular state budget is drafted and processed from late summer to end-of-year, with a view to being passed just ahead of the year it refers too. Several additional budgets such as the present one have been passed in recent years, for instance during the Covid pandemic.

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