The state lacks the additional funds needed, and Minister Ligi stressed that all major sectors have to make cuts, to balance the state's finances.

The Health Insurance Fund's own reserves were created on a legal basis, for situations when social tax revenues fall short of what is required.

As to why now does not constitute such a situation Ligi told "Aktuaalne kaamera."

"They have amassed it, but this use must not be one-off."

"It wold be very convenient to state that 'we have reserves, let's turn them loose.' No, it must be seen how long these funds will last and where savings are possible. This has to be done all the time, and it is not just so that we save money and then spend it all at once," the minister went on.

Lengthy treatment queues may grow even longer next year, with the health fund is facing a €200 million shortfall in its budget.

Estonia's healthcare system is funded via the social tax. Thirteen percent of every employee's salary goes to the Health Insurance Fund.

Rain Laane, Health Insurance Fund chief, said: "We've known for four years that by 2025 we would be facing a deficit of at least €150 million," adding that revenues have fallen by €60 million, making for an even larger, not fully anticipated deficit.

While some savings have been achieved, the budget for next year is still €189 million short, while the fund has reserves of nearly €700 million all told.

Health Minister Riina Sikkut (SDE) has said while the health sector is underfunded, future needs are growing, meaning eventually the reserve will have to be drawn upon.

"These adjustments must be made in the budget now, and for the next year, this means utilizing the reserves," Sikkut told "Aktuaalne kaamera."

This will however require a legislative amendment, which Sikkut said she plans to propose such a change to the government.

Sikkut said she and Ligi have different perspectives on the matter. "The finance minister is a member of the Health Insurance Fund's board, so we have these discussions in various formats. We have different understandings, but we'll have to resolve these issues," Sikkut continued.

She said that the healthcare system has been trying to find ways to cut costs, but slashing the Health Insurance Fund's budget by nearly €190 million is not feasible.

Rain Laane said that substantial cuts of that size could result in longer treatment queues for patients.

As things stand, the Health Insurance Fund's reserves are sufficient to cover the shortfall for the next three years, "Aktuaalne kaamera" reported.

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