Government to stick to coalition agreement during budget discussions
Ministers agreed cuts, savings, and the defense tax must be implemented on the first day of budget discussions on Tuesday. The plan must be submitted to the Riigikogu by the end of September.
The government reviewed the economic forecast but Prime Minister Kristen Michal (Reform) said it does not change the principles agreed upon during the coalition negotiations.
"The implementation of the coalition agreement is certainly being debated, but only one tax has been agreed, which is the security tax, designed to cover increased security spending for a limited period, and cuts have been agreed. If anybody is short of energy, we will give the impetus for cuts and try to make these taxes as socially sustainable as possible," he told "Aktuaalne kaamera."
Eesti 200 Chairman Margus Tsahkna said disputes will probably start over cuts. He said the government should not abandon its plan.
"Overarching cuts in those sectors related to wages and labor costs, state benefits and also means-tested social benefits must come up for debate. My concern today is not about the Eesti 200 ministers, but whether too many exemptions will be sought by one minister or another. But then we will end up where we were a year ago – there will be no cuts," said Tsahkna.
While the economy is forecast to grow, the security tax cannot be waived, he stressed.
"Our security situation is not going to get any better in the coming years. And we have to invest in our national defense today, and that money has to be taken. What's important is that it's time-bound," the foreign minister said.
Minister of Health Riina Sikkut (SDE) also wants to stick to what has already been agreed. But, she added that the government must also be responsible for people with lower incomes.
"In the case of pensions, the decision to continue with index-linked pensions is the only sensible one, as is an agreement in principle on a rise in the minimum wage, so that the wages of people on lower incomes continue to rise," Sikkut said.
Disputes are expected as the government must hand over the state budget to the Riigikogu in September.
"It takes sleepless evenings and maybe nights, but the job gets done," said Michal.
The next budget debate is scheduled for Thursday.
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Editor: Mari Peegel, Helen Wright
Source: Aktuaalne kaamera
