"We will curb pay increases for senior state officials in exactly the same way as we did with an earlier government decision. I'm surprised this hasn't leaked, but we really have made that decision," Michal said.

He noted that judges have already expressed their displeasure, as they had expected the increase to go ahead.

"Now the Riigikogu will probably have to assess the matter because the pay differentials between judges, Riigikogu members, ministers and committee chairs are already quite out of line. Ministers earn less than committee chairs, even though their responsibilities and, at times, workloads are completely different. So we will postpone this pay increase — or, more precisely, reduce the rate of increase, which is probably the correct way to put it," Michal said.

Speaking about the budget in general, the prime minister stressed that the government's plan is to carry out the promised cuts.

"We have now made 10 percent cuts over three years — with pensions, teachers, defense capabilities and the police exempted — and we are reducing the deficit by half a percentage point, as the Bank of Estonia and the Fiscal Council have recommended," Michal said.

He said that if subsequent governments likewise reduce the deficit by half a percentage point at a time, growth in the debt burden will remain under control and the budget can eventually be brought into balance.

According to the prime minister, canceling excise tax increases is always an option.

"An excise tax increase can always be canceled because the six-month advance notice rule does not apply to changes that are more favorable to taxpayers. We similarly canceled an excise tax increase shortly before it was due to take effect last time," Michal said.

Asked by the host how realistic it was that such a proposal would pass the Riigikogu, the prime minister said it would depend on fuel prices next spring.

Senior state officials' salaries are indexed, but a legislative amendment adopted in 2023 temporarily halved the rate of their pay increases in order to save €20 million over four years. The system in place before the amendment was due to be restored in 2028.

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