"It likely comes as no surprise to anyone that various sectors are in need of pay raises," Prime Minister and Reform Party chair Kristen Michal told ERR, commenting on a recent proposal by Finance Minister Jürgen Ligi (Reform) to hike salaries in the public sector, including those of ministry officials. "The desire for salary increases in education, internal security and culture has been discussed for a long time. This same debate took place publicly last year and it likely will again this year. Ultimately, it all depends on the state's financial capacity."

"We just received the spring forecast and we'll begin drafting the budget in August or September based on the summer or autumn forecast. What matters then is what the state's financial means are. If there's room in the budget, we will, of course, try to accommodate that," he added.

"As for Jürgen Ligi, it's clear he's not the most generous finance minister Estonia has had — on the contrary, he keeps a very tight grip on the state's finances. So if he says he's looking for ways to make it happen, he likely is," Michal noted.

Ligi said on ETV's "Esimene stuudio" on Wednesday that the state apparatus — which employs about 3,000 people across various institutions — needs salary increases in the coming years. "It's not sustainable to say that state employees' salaries won't rise for four years. And this isn't just about teachers, whom I would of course name first, or doctors, who receive raises based on different mechanisms, or police officers — it's also about those working in the state apparatus," Ligi said.

"Yes, it's a very small part of the public sector. I think the priority should still be the fields I mentioned — education, culture, internal security and so on. After that, we'll assess what's possible," Michal responded.

Michal emphasized that the state's largest and most challenging expenses in the coming years are primarily defense-related.

"That's where the bulk of our money will go. And it's no secret that the budget is in deficit — we're spending more than we have and that will continue in the coming years. We'll likely even take out loans to cover defense costs, so all of this will determine what we can do regarding salaries. But if the finance minister says he's looking for ways to make it happen, I think it's worth taking that seriously. It means we're absolutely working to create the conditions for salary increases in the public sector — especially in priority areas," Michal said.

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