All three opposition parties – Isamaa, the Center Party and the Conservative People's Party of Estonia (EKRE) – agree that efforts to improve next year's budgetary position must start right away, even with the summer recess imminent.

The supplementary budget still has one reading to go, though this is largely a formality, meaning it should pass next week.

While during the negotiations it was referred to as a €175-million negative (meaning predominantly made up of cuts) budget, its eventual figure is now €183 million.

Some opposition politicians however say that the supplementary budget demonstrates that the Reform-SDE-Eesti 200 coalition lacks a clear current road-map to rectify public finances and to stimulate economic growth.

Isamaa leader Urmas Reinsalu said: "The bar has been set pretty low."

"In terms of real savings on administrative costs or cutting support, the total is about €50 million, equivalent to the cost of constructing the new environmental agency buildings as already decided by the government," Reinsalu added, speaking to ETV news show "Aktuaalne kaamera" (AK).

One of the main issues identified by the opposition is the postponement of investments to the next year.

Center Chair Mihhail Kõlvart said: "We understand that this won't be the last negative supplementary budget. It's already clear that more savings will need to be found to cover the budget deficit."

EKRE meanwhile says abandoning certain ongoing investments or tax changes would be sufficient to overcome the budget crisis.

This included the high-speed, north-south Rail Baltica link, already under construction.

EKRE leader Martin Helme told AK: "Canceling Rail Baltica would save €300-400 million annually."

"Scrapping the income tax reform, which eliminates the 'tax hump,' would save about €500 million annually from the state budget. Yet at the same time the green transition, entailing the construction of wind and solar parks and the necessary electrical infrastructure, costs taxpayers €500 million or more each year," Helme said.

Center also stresses the importance of developing a state economic growth strategy which, Kõlvart said, includes an additional bank tax which "could be temporary, as long as banks gain extra revenue from the rise in Euribor."

Abandoning the income tax reform is the other major change which Center would apply, Kõlvart said – referring to the "tax hump," or bracket creep.

For Isamaa, savings can be made from, among other areas, unused funds from last year.

Reinsalu said the tax hump abolition could be postponed at least, while administrative costs can be reduced "significantly," and domestic legislation can be tuned to "provide clearer guidance to ensure that EU funds can be utilized in the agreed volume this year."

Reinsalu, Kõlvart and Helme are all leading candidates at the current ongoing European elections.

The current estimated state budget deficit is around a billion euros, with the aim also being to avoid this figure doubling next year.

The Reform Party, along with Isamaa's progenitor party, had historically been one of balanced budgets, austerity and a flat rate of taxation.

--

Follow ERR News on Facebook and Twitter and never miss an update!