Constitutional institutions budgets frozen at 2023 level
Constitutional institutions in Estonia have agreed to keep their budgets at 2023 levels for next year, ie. 2025, Annely Akkermann (Reform), chair of the Riigikogu's Finance Committee, said Wednesday.
The constitutional institutions are: The Riigikogu, the Government of the Republic of Estonia, the President of the Republic, the Bank of Estonia (Eesti Pank), the Tartu-based Supreme Court, the Chancellor of Justice, and the National Audit Office (Riigikontroll).
Akkermann said: "The constitutional institutions are, of course, aware of the country's financial state, and their budget requests were within the limits set for them in the current state budget strategy."
"They will also manage in 2025 via essentially the same personnel costs they planned for 2023," she added.
Pursuant to the upcoming amendment to the State Budget ActX which takes effect next year, the Riigikogu Finance Committee is to establish the budget limits on constitutional institutions, to ensure their financial autonomy.
On Tuesday this week, the finance committee reviewed the budget proposals for these institutions, which had already been submitted to in June-July.
After confirming the budget sums for the constitutional institutions, the committee will submit them to the government ahead of the finalization of the state budget.
The government is required to find budgetary coverage within these limits, Akkermann explained. This ensures that constitutional institutions no longer need to seek funding directly from the executive branch.
In commenting on the submitted budgets, Akkermann noted that three topics still remain unresolved, namely: The ongoing maintenance of the Riigikogu building, judicial training and the court information system, all of which the committee is to further discuss.
"But 99 percent of the budget is completely comprehensible and reasonable given the current economic situation. It will, of course, be challenging for these institutions to fulfill their tasks so that everything gets done," Akkermann acknowledged.
"They face the complex task of recruiting highly qualified staff, particularly those with a specialized legal education, and filling their vacancies yet ensuring that their work gets done," she added.
Akkermann pointed out that a significant portion of these institutions' budgets get allocated to personnel costs: approximately half for the Office of the President, more than half for the Riigikogu, and even over 80 percent towards the Supreme Court.
"In knowing how inflation has reduced the purchasing power of wages recently, they will have to get by in 2025 with essentially the same personnel costs they planned for 2023," Akkermann reiterated.
These budget limits for 2025 are based on the state's four-year budget strategy, known in Estonian as the RES (Riigieelarve strateegia).
Akkermann said: "When we took oon the 2024 budget, it came with a strategy which included limits for the next four years, in this case, up to 2027. And the 2025 budget requests the constitutional institutions remain within the limits set by this budget strategy."
In any case, what is needed to be done, is being done, she said. "All constitutional institutions have been extremely frugal."
The Finance Committee is to further discuss the salary issue with representatives from the Ministry of Finance on Thursday, and hopes to confirm the budget ceilings at its session on Monday.
Previously, the government prepared the budgets on constitutional institutions as a part of the state budget, which was then approved by the Riigikogu.
However, this process gave the government, as the executive body, too much control over the work of other constitutional institutions, it was argued.
Editor: Andrew Whyte, Mait Ots