All ministers have been tasked with cutting a total of 10 percent from their respective budgets over the next three years, with the largest portion – 5 percent – required to be cut from next year's proposed budget.

The Ministry of Finance, based on the coalition agreement, developed a methodology outlining how ministries should implement these budget cuts. However, the ministry has declined to share this methodology with the public before the end of August. Prime Minister Kristen Michal (Reform Party) highlighted some guiding principles.

"European Union funds and all investments are initially planned to be excluded. This means we won't cut investments, nor will we cut various budgets that promote economic growth," he said.

Ministries are expected to submit their budget reduction calculations by August 27, when the government begins drafting next year's budget.

"On August 27, we will start the general introduction of the budget. By that time, the Ministry of Finance's economic forecast should be ready, and I assume that by then the ministries will have made preliminary preparations to identify potential cuts. Any proposals for cuts below 5 percent will not be considered," Michal explained.

Minister of Regional Affairs and Agriculture Piret Hartman (Social Democratic Party) acknowledged that finding areas to cut is difficult because a large portion of her ministry's budget consists of EU funds, which cannot be reduced, and local governments, including regions where she does not want to make cuts. However, she assured that the 5 percent target will be met.

"I don't want to cut veterinary education or any topics related to education within our ministry. At the moment, we are definitely reviewing operating expenses, which were also one of the bases for calculating these cuts. I don't want to make cuts in personnel, either in the ministry or in our subordinate agencies, because our salaries are significantly lower compared to other ministries and departments," Hartman explained.

The ministry also plans to review the services it offers.

"Are there activities that are not mandated by legislation and are not obligatory, but for some reason, we have continued to provide these services?" the regional minister pondered.

Hartman could not yet provide specific examples of such activities.

Similarly, Minister of Justice and Digital Affairs Liisa Pakosta (Eesti 200) is reluctant to cut personnel. She also ruled out cuts to armed security and cybersecurity.

"Renovations are perhaps what come to mind the most right now. We have €15 million allocated for renovations, and none of the buildings are in such a state that they urgently need repairs," she said.

Pakosta also plans to identify and eliminate duplicate services. She cited the example of state-provided free legal aid.

"For instance, when I worked as the gender equality and equal treatment commissioner, which is also part of the legal protection framework, international organizations often asked how should people understand that you offer exactly the same service as the chancellor of justice. Essentially, it's the same service. In addition, we also fund free legal aid for resolving discrimination disputes through the law firm Hugo Legal," Pakosta explained.

However, detailed budget cut plans will not be shared with the public until they are approved by the government.

"The idea behind the government's discussions, and also in reviewing these cuts, is to ensure that they are reasonable, so that we don't end up in situations like with the Defense Forces orchestra or the roadside toilets and trash bins. We will thoroughly review the budget nuances, and I believe that within a few weeks, we will have a detailed picture," Michal said.

--

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