Estonian parlt's select committee to discuss budget strategy at public sitting

  • 2021-05-03
  • BNS/TBT Staff

TALLINN - The state budget control select committee of the parliament of Estonia is about to discuss the state's fiscal strategy for 2022-2025 and the 2021 stability program at a public sitting on Monday.

According to the chairman of the committee, opposition Isamaa MP Urmas Reinsalu, a number of serious questions have arisen regarding the state budget strategy, on which the committee wants to get clarifications.  

"When it comes to national defense spending in particular, I would like to emphasize that reducing the financing decisions made earlier is out of the question in the present security situation," Reinsalu said. 

The government on Thursday endorsed the state budget strategy for 2022-2025, according to which the state budget will run a deficit of 1.5 billion euros in 2022 with income totaling 12.3 billion euros and expenditures 13.8 billion euros. Defense expenditures will continue to equal more than 2 percent of gross domestic product in each of the four years covered by the strategy.

On the back of EU funds, investments by the government sector will total over eight billion euros during the period, while 1.8 billion euros will be channeled towards the green transition.

The payroll of the police, rescuers and teachers will rise by 3 percent next year and the average old-age pension will be exempted from income tax by 2023. To cover the costs, saving on current expenses is planned for all areas of administration. 

Representatives from the Ministry of Finance, the Fiscal Council and the National Audit Office have been invited to attend the meeting, which starts at 1:15 p.m. and will be streamed online.