Presenting half-truths is one of the most frequently used tactics in the toolbox of an experienced demagogue, so it's no surprise that Defense Minister Hanno Pevkur (Reform) tries to pour praise on the state budget in just such a manner.

Pevkur states that Estonia's defense spending has increased, comparing it to pre-war times (!) when it was significantly lower, and thus claims to prove that the €2.5 billion collected from the so-called "defense tax" is indeed going to national defense and nowhere else. However, he does not cite any figures from the state budget strategy to back up this claim – nor could he, since the numbers tell a different story.

So, where is the "defense tax" money really going? It's not easy to determine, as tax revenue collected for the state budget does not come with labels attached. We can get an idea of the government's plans, however, by comparing different sectors in the state budget strategy and the changes in the amounts of money allocated to them over the next four years.

Given that a war of conquest is underway beyond our borders, one might expect Estonia's defense spending to rise, especially when the government is implementing a package of tax increases branded with the noble-sounding term "defense tax."

Unfortunately, the state budget strategy does not reflect this: of the €2.5 billion expected to be collected through the "defense tax" over the next four years, €659 million, or 27 percent, will go to the Ministry of Defense's budget. Meanwhile, the Ministry of Social Affairs' spending will increase by €3.6 billion. In other words, the social affairs budget will grow about 5.4 times more than the defense budget.

How can an adult, especially the minister of defense, claim – knowing these figures – that the "defense tax" is going entirely to defense spending? This is a question Hanno Pevkur must first ask himself. If the government's priority is to inflate social spending, then that should be stated openly, rather than misleading people with the "defense tax" and creating a false sense of security, as if the government truly considers the defense of the Republic of Estonia to be its top priority.

The state budget strategy makes it clear in black and white that the defense budget will increase by €659 million over four years, while the Ministry of Social Affairs' budget will grow by €3.6 billion. No matter what spin is added, how these numbers are "interpreted" or how they are compared to the past, the reality does not change.

The "defense tax" will not go substantially toward security expenditures, the defense budget is not growing the fastest and the reason for the tax hikes is not the war being fought beyond our borders, but rather the state's unsustainable pace of expenditure growth.

Even the promise made to citizens to buy €1.6 billion worth of ammunition with the funds raised under the "defense tax" won't be fulfilled. The government has explained that half of the ammunition purchases will be left for the next administration to handle, due to long delivery times and complex procurement processes. Magnus-Valdemar Saar, the head of the Estonian Defense Investments Center (RKIK), recently debunked this claim in an interview, stating that the main reason for spreading out the purchases over several years is not delivery schedules, but rather "political, budgetary or other considerations."

If the ammunition procurement contracts are made, but the payment is left to the next government, the funds collected under the "defense tax" that are not being used to increase the defense budget over the next four years should be placed in a government reserve so that the next administration can cover these ammunition costs.

At present, there seems to be no such plan in place. This further demonstrates that while the government is collecting a "defense tax," it is consciously using the funds to finance other expenditures, primarily in the social sector.

Collecting money under the guise of national defense and redirecting it elsewhere is outright deception and will erode public trust. I'm certain that this is the last thing we need right now.

--

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