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Seeder's plan to cover deficit: Drop planned pay hike, cut spending

IRL chairman Helir-Valdor Seeder.
IRL chairman Helir-Valdor Seeder. Source: (Siim Lõvi/ERR)

According to unconfirmed information, Pro Patria and Res Publica Union (IRL) chairman Helir-Valdor Seeder has offered that one way to cover the deficit caused by changes to the previously agreed-upon tax package would be to drop central government employee pay hikes included in the budget strategy and cut central government costs.

According to information known to ERR, Seeder proposed canceling a 2.5-percent wage increase intended for central government employees included in the state budget strategy for the 2018-2021 period.

Seeder also allegedly wants the state to cut the central government's economic costs by three percent each year.

The Public Relations Department of the Ministry of Finance declined to comment on the matter, explaining that it was up to politicians and political parties to answer.

Seeder himself could not be reached for comment on Tuesday morning.

The ruling coalition planned a series of new taxes and tax changes in the state budget strategy which earned a lot of criticism from business-owners. Of these taxes, the deposit tax saw the greatest opposition.

Seeder announced after he was elected chairman of IRL that his party would not support the tax package in its current form in the Riigikogu and that different solutions must be found.

Editor: Aili Vahtla

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