ESTONIA

The Riigikogu passed the Act on supplementary budget

By
Helena-Reet Ennet
-

NordenBladet —

The aim of  the Act on the State’s Supplementary Budget for 2024 (456 SE), initiated by the Government, is to ensure the financial stability and sustainability of the country. With the supplementary budget, Estonia will comply with the European Union’s budget rule under which the budget deficit must remain within 3% of GDP.

The measures in the negative supplementary budget amount to a total of 183 million euro, which will improve the budget position by 173 million euro. The Act on supplementary budget includes nearly 115 million euro in savings measures and 68 million euro in additional revenues. Savings in the state’s current expenditure will mainly concern management and operating costs, and public foundations will also have to contribute to savings. More dividends will be taken from state-owned companies to increase state revenues.

On 8 December last year, the Riigikogu adopted the state budget for 2024, which had a revenue volume of around 16.7 billion euro and an expenditure volume of around 17.7 billion and an investment budget of around 817 million euro and a financing transactions budget of 1.4 billion.

During the debate, Andrei Korobeinik (Centre Party) and Urmas Reinsalu (Isamaa) took the floor.

61 members of the Riigikogu voted in favour of passing the Act and 12 were against.

The Act on Amendments to the Land Tax Act (437 SE), initiated by the Government, increases local governments’ decision-making power in determining land tax. The amendment of the Act will not mean an increase in land tax to a greater extent than provided by the current Act. The tax relief for land under homes will remain in place, but its amount will be decided by municipal councils which will be given greater discretion for this.

At present, the fiscal autonomy of local governments is insufficient, leaving municipalities dependent on central government funding decisions. This forces municipalities to wait for state funding when making their budgets, which in turn hinders forward planning for local life. Increasing fiscal autonomy at local government level will allow municipalities to strike a better balance between the level of services and the imposition of taxes.

In 2025, the annual increase in land tax will be subject to a uniform national ceiling of up to 50 percent, and 20 euro in the case when the 50 percent increase in an amount of land tax is less than 20 euro. From 2026 onwards, local governments will be able to set their own limit for the annual increase in land tax, ranging from ten to one hundred percent. Land tax cannot exceed the amount of the land tax calculated on the basis of the taxable value of the land and the land tax rate.

According to the Act, the nationwide area-based tax relief for land under homes will be abolished from 2026, but local governments will be able to decide on the size of the amount-based tax relief for land under homes. The relief may be up to a thousand euro and land tax will have to be paid for the part exceeding the tax relief. A higher land tax can be paid in two instalments: by 31 March and 1 October. The Act increases the amount of the first payment from 64 euro to 100 euro.

Pursuant to the Act, from 2025 the maximum tax rate on residential land and land parcels located within yards on profit yielding land will be increased from 0.5 per cent to one per cent of the taxable value of the land. The maximum rate of land tax on “other land”, such as commercial land, production land and transport land, will also be increased from one per cent to two per cent of the taxable value of the land.

In addition, the Act makes a specification that land in state ownership with intended purpose of public construction works land will be exempt from tax only if the land is used by a state agency or local government agency.

Land tax is currently the only property tax in Estonia that has remained at the same level since 2012.

During the debate, Aivar Kokk (Isamaa), Lauri Laats (Centre Party) and Varro Vooglaid (Estonian Conservative People’s Party) took the floor.

56 members of the Riigikogu voted in favour of passing the Act and 20 were against.

The Act on Amendments to the Information Society Services Act and the Penal Code (224 SE), initiated by the Government, brings Estonian law into conformity with the EU Regulation on addressing the dissemination of terrorist content online.

The main aim of the Regulation is to improve cooperation with hosting service providers in the EU in order to enhance the removal of terrorist content online. The Regulation concerns social media, as well as video, image and audio-sharing services in the case of which, at the request of users, the hosting service provider publishes web content which is publicly available and which is not subject to access restrictions, for example, password or encryption.

According to the Act, hosting service providers are required to adopt the necessary measures to prevent the spread of terrorist content online and in the event of the existence of such content they are required to remove or disable access to it. The Act also regulates the division of tasks in order that it would be possible for competent authorities to implement measures arising from the Regulation and to exercise supervision over compliance with the obligations of hosting service providers.

In addition, the Act amends the provision on incitement to acts of terrorism in the Penal Code so that, in the future, it will be possible to also hold liable persons who incite to the commission of acts of terrorism when they issue incitements in a manner hidden from the public, for example, in moderated forums or groups.

63 members of the Riigikogu voted in favour of passing the Act and one was against.

The Act on the Accession to the Convention for the Establishment of a European Organization for Nuclear Research and its Financial Protocol and Protocol on Privileges and Immunities (451 SE), initiated by the Government, allows Estonia to become a full member of the European Organization for Nuclear Research (CERN).

Estonia has been engaging in research cooperation with CERN since 1996. Estonia becoming a full member of CERN will open doors for Estonian businesses who will be able to participate in CERN procurements without limitations in the future. Namely, the total financial volume of contracts won by Estonian companies in a year and the employment and traineeship contracts of people with Estonian citizenship working at CERN is limited to the amount of the annual membership fee which was 1.45 million euro in 2023. By becoming a CERN member state, Estonia will be released of this limitation. CERN’s procurements are technology-intensive and rigorous, and thanks to CERN’s reputation, winning them is a very high quality mark for an exporting company. In cooperation with CERN, it is also possible to develop new products and technologies and to bring knowledge from cutting-edge science to business.

The European Organization for Nuclear Research (CERN) was established on 29 September 1954. CERN provides for collaboration among European States in nuclear research and in research related thereto. 23 countries are members of CERN. In order to become a full member of CERN, it is necessary to accede to the Convention for the Establishment of CERN and its Financial Protocol and the Protocol on the Privileges and Immunities of CERN. The associate member status is mandatory for new member states before becoming a full member. Estonia was granted associate member status on 1 February 2021.

66 members of the Riigikogu voted in favour of passing the Act.

Verbatim record of the sitting (in Estonian)

Video recording will be available to watch later on the Riigikogu YouTube channel.

Riigikogu Press Service
Gunnar Paal
+372 631 6351, +372 5190 2837
gunnar.paal@riigikogu.ee
Questions: press@riigikogu.ee

 

Link uudisele: The Riigikogu passed the Act on supplementary budget

Source: Parliament of Estonia

Hussar accepted the highest award of the Ukrainian World Congress on behalf of the Riigikogu

By
Helena-Reet Ennet
-

NordenBladet —

The Ukrainian World Congress, which unites the Ukrainians in diaspora, decided to award St. Volodymyr the Great Medal to the Riigikogu for its contribution to supporting Ukraine, as well as in recognition of the Riigikogu being the first in the world to recognise the Holodomor as a genocide against the Ukrainian people. Estonia declared the great famine of 1932–1933 a genocide against the people of Ukraine in 1993.

The medal was presented today at a reception in the White Hall of Toompea Castle by Vira Konyk, Head of the Congress of Ukrainians of Estonia, who said that the St. Volodymyr the Great Medal was awarded to individuals, and awarding this medal to an official institution was one of the few exceptions in the history of the Ukrainian World Congress. “It is a token of gratitude from the global Ukrainian community for your continued and sincere support for Ukraine. It demonstrates a deep respect for the courage of the Parliament of Estonia, which was the first in the world to recognise the Holodomor as a genocide of the Ukrainian people,” she said.

Accepting the medal, the President of the Riigikogu said that it was a recognition not only for the Riigikogu, but for all the people of Estonia. “We have firmly supported Ukraine in its fight against Russia, which is waging a war of aggression, and we will continue to support Ukraine until the victorious end of the war,” Hussar assured, and added that Estonia would also continue to support Ukraine on its path to the European Union and NATO.

In Estonia, the award of the Ukrainian World Congress was also presented to Tetyana Ivushkina, the founder and head of the Ukrainian Museum in Kohtla-Järve and the cultural society Dva Kolyory, and to Director of the Ukrainian Cultural Centre Bogdan Lyutyuk.

Photos (Erik Peinar / Chancellery of the Riigikogu)

Riigikogu Press Service
Karin Kangro
+372 631 6356, +372 520 0323
karin.kangro@riigikogu.ee
Questions: press@riigikogu.ee

Link uudisele: Hussar accepted the highest award of the Ukrainian World Congress on behalf of the Riigikogu

Source: Parliament of Estonia

Stoicescu underlined the need to strengthen NATO’s defence and deterrence capability in Washington

By
Helena-Reet Ennet
-

NordenBladet —

“Sensing the threat posed by our aggressive neighbouring country, we spend 3.2 per cent of our gross domestic product on defence and have contributed significantly to granting military assistance to Ukraine. Now is a critical time for the Allies to develop our defence and deterrence capabilities, to which the Congress has contributed greatly in recent years through the Baltic Security Initiative,” said Stoicescu, who during his visit focused on promoting the defence cooperation between Estonia and the USA and on explaining Estonia’s perception of threat as a NATO and European border state.

Stoicescu welcomed the fact that before the US presidential elections, the representatives of the Congress reaffirmed that the allied relations of the US with Estonia are strong and would not change, regardless of the election results.

During the visit, which lasted from Tuesday to Friday, Stoicescu met with Ranking Member of the House Armed Services Committee Adam Smith, and members of the Congress Tim Burchett, Ralph Norman, Larry Bucshon, Carol Miller, Gabe Amo and Derrick Van Orden. He also had a meeting with Sonata Coulter, Deputy Assistant Secretary of State overseeing policy toward Russia and Central Europe, with whom he spoke of the threat posed by Russia.

In Pentagon, the Chairman of the National Defence Committee discussed the bilateral defence cooperation between Estonia and the USA and NATO’s upcoming Washington Summit with Principal Director for European and NATO Policy in the Office of the Secretary of Defence Alton Buland. Stoicescu also participated in a discussion with the analysts from think tank RAND Corporation, and spoke at a round table dedicated to the war in Ukraine at the think tank American Enterprise Institute. Besides that, Stoicescu and the Ambassador of Estonia Kristjan Prikk, as well as representatives of many other countries, attended the ceremony of laying a wreath at the Victims of Communism Memorial in Washington.

Riigikogu Press Service
Karin Kangro
+372 631 6356, +372 520 0323
karin.kangro@riigikogu.ee
Questions: press@riigikogu.ee

Link uudisele: Stoicescu underlined the need to strengthen NATO’s defence and deterrence capability in Washington

Source: Parliament of Estonia

The European Union Affairs Committee reached consensus on increasing defence funding

By
Helena-Reet Ennet
-

NordenBladet —

Chair of the European Union Affairs Committee Liisa Pakosta said that industrial capacities during peacetime were instrumental for keeping peace. “For Estonia, this is an issue of survival. We know that Russia has the will to restore the Russian Empire, that Russia is rebuilding its capabilities at a strong pace, that Russia’s troops are numerically larger than they were before the war. We must do everything to ensure that Russia would not get the opportunity to attack the European Union and NATO,” Pakosta stated.

“The Russian Empire must receive a clear deterrence from the European Union’s defence industry, and this means peacetime production capability that meets wartime requirements. Even if we do not use this production capability to its full extent in peacetime, it is better to risk wasting the capacity than to lose the next war. If we want to be better protected after five years, decisive steps need to be taken now, both at the national level by increasing defence spending and at the European level by investing in capabilities,” Pakosta emphasised.

Member of the European Union Affairs Committee Aleksei Jevgrafov added that today’s decision of the Committee had been adopted by a consensus, and the members of the Riigikogu had agreed to all priorities and needs that had been set out in Estonia’s positions. He pointed out that the Defence Industrial Strategy was a historic document for the European Union as well. “The 1.5 billion euros planned for enhancing Europe’s defence readiness in the proposal for a Regulation is not enough, and it is complicated to increase defence capability with that. As funding is urgently needed, Estonia supports the issuing of European Union Defence Bonds as one solution, in order to mobilise at least 100 billion euros of additional funding sources before 2028.”

Kristo Enn Vaga, who gave an overview of the positions of the National Defence Committee of the Riigikogu at the sitting, highlighted developing the European defence industry as a clear priority for Estonia. “We must respond to Russian aggression and the speed of their war machine with long-term planning and strategy. Bringing more money into defence will speed up the delivery of the necessary ammunition, boost Europe’s economy and create more jobs. It is in Estonia’s interests that the strategy is swiftly implemented and that not only the Eastern border countries, but all 27 EU Member States take the developing of the defence industry seriously.”

It was decided at the sitting that the draft did not set out clearly what needed to be done to enhance defence capability, but Estonia wanted that the emphasis would be on developing ammunition, air defence and distant strike capability.

At the sitting, Director of the Innovation Department of the Ministry of Defence Miiko Peris gave an overview of the European Defence Industrial Strategy and programme, and the positions of the Government in regard to them.

The European Union Affairs Committee also discussed the European Defence Industrial Strategy in detail also at its public sitting on 11 March, and approved Estonia’s positions on increasing defence readiness funding at its public sitting on 27 May, where the next long-term budget of the European Union was discussed.

For more information, please contact: Liisa Pakosta, phone +372 502 6191

Riigikogu Press Service
Merilin Kruuse
+372 631 6592; +372 510 6179
merilin.kruuse@riigikogu.ee
Questions: press@riigikogu.ee

Link uudisele: The European Union Affairs Committee reached consensus on increasing defence funding

Source: Parliament of Estonia

The Riigikogu passed a Resolution on supporting the adoption of nuclear energy in Estonia

By
Helena-Reet Ennet
-

NordenBladet —

The Riigikogu made a fundamental decision on whether to consider nuclear energy production in Estonia in the future. The Resolution is mainly based on the analysis conducted by the Nuclear Energy Working Group, which concluded that the adoption of nuclear energy in Estonia is feasible.

According to the Resolution, the National Development Plan of the Energy Sector Until 2035 must address the impacts of the adoption of nuclear energy in order to ensure security of energy supply during the transition to climate-neutral energy production.

When establishing the regulatory framework, it must be ensured that the risks related to national security, financing and form of ownership are thoroughly assessed.

According to the explanatory memorandum of the Resolution, the adoption of nuclear energy in Estonia would have several advantages. Among other things, nuclear power would provide a continuous generation capacity that would balance the fluctuations in renewable energy generation capacity, help Estonia reach its climate neutrality target, ensure a stable and affordable electricity price in the long term perspective, promote research and development, bring economic benefits and create jobs for local people. The Resolution does not grant the right to build a nuclear power plant in Estonia.

41 members of the Riigikogu voted in favour of passing the Resolution of the Riigikogu “Supporting the adoption of nuclear energy in Estonia” (431 OE), submitted by 55 members of the Riigikogu. 25 members of the Riigikogu voted against the Resolution, and there were two abstentions.

Riigikogu Press Service
Gunnar Paal
+372 631 6351, +372 5190 2837
gunnar.paal@riigikogu.ee
Questions: press@riigikogu.ee

 

Link uudisele: The Riigikogu passed a Resolution on supporting the adoption of nuclear energy in Estonia

Source: Parliament of Estonia

Parliamentarians of 19 countries push for the confiscation of €300bn in frozen Russian central bank assets

By
Helena-Reet Ennet
-

NordenBladet —

The joint statement evokes the expected decision by the G7 leaders (Canada, France, Germany, Italy, Japan, UK, and US) at their next meeting on whether — and how — to seize the nearly €300bn in Russian state assets frozen in western countries since February 2022. “As chairs and parliamentarians of our respective parliamentary foreign and European affairs committees, we collectively urge G7 leaders to explore all legal avenues to support Ukraine, starting with the creation of multilateral or bilateral loan facilities backed by the windfall profits generated by the frozen Russian assets,” they write.

However, they see this as only the first step. “The ultimate objective must be to fully confiscate all Russian assets and transfer them to Ukraine, ensuring that this process adheres to international law. Russia’s war of aggression has already done almost €500bn in damage to Ukraine’s infrastructure — and that amount grows daily,” write the parliamentarians, referring to the fact that at least €3bn a month in outside financial assistance is required just to prevent a collapse of Ukraine’s economy. “Against numbers like these, confiscating €3bn in annual windfall profits on Russia’s frozen assets simply is not a sufficient response to the challenge Russia has issued to Ukraine and its friends in the democratic world.”

The parliamentarians say in their joint statement that a multilateral or bilateral loan facility backed by windfall profits generated by the frozen Russian assets is estimated to only provide around €40bn-€50bn to Ukraine. “We see these proposals as a first step — not an alternative — to confiscating the nearly €300bn,” they state.

The parliamentarians affirm the need to step up our assistance to help Ukraine win this war — both for Ukraine’s democratic European future and for our own security. “To do that, we need to be prepared to take big, bold decisions proportionate to the historical significance of our times. Our decision here will set a precedent either way. If we confiscate the entire €300bn in accordance with international law, we affirm the legal right to take countermeasures when a state like Russia grossly violates international law with its aggression,” the statement reads.

They see confiscating the full amount as sending a signal of our resolve to Vladimir Putin and other authoritarians who may seek to attack their neighbours that such aggression has severe financial consequences. “Leading economists who support full confiscation point out that most market impacts were priced in at the time these assets were originally frozen two years ago — and that seizure in response to aggression would be too rare an occurrence to have major currency impacts. To do this, we urge the G7 to dispense with half-measures and to take the only step that will have the required impact — confiscation of all €300bn in frozen Russian central bank assets,” the parliamentarians write.

The joint statement was signed by chairs of committees and members of parliaments from the European Parliament and the parliaments of Belgium, Bulgaria, Czechia, Denmark, Estonia, Germany, Ireland, Italy, France, Latvia, Lithuania, Luxembourg, Moldova, the Netherlands, Poland, Romania, Ukraine, United Kingdom, and United States. The Chairman of the Foreign Affairs Committee of the Riigikogu Marko Mihkelson signed the statement on behalf of Estonia.

Riigikogu Press Service
Karin Kangro
+372 631 6356, +372 520 0323
karin.kangro@riigikogu.ee
Questions: press@riigikogu.ee

Link uudisele: Parliamentarians of 19 countries push for the confiscation of €300bn in frozen Russian central bank assets

Source: Parliament of Estonia

Baltic Foreign Affairs Committees meet in Kuressaare

By
Helena-Reet Ennet
-

NordenBladet —

The Chairman of the Foreign Affairs Committee of the Riigikogu Marko Mihkelson describes the cooperation with Latvian and Lithuanian Foreign Affairs Committees as closer than ever, as is testified by numerous joint visits and statements. “If we hope to achieve our goals in foreign and security policy, it is crucial that we continue our close cooperation, harmonise our positions, and plan our further steps together,” he said.

The meeting will focus on supporting Ukraine in its fight against Russia, who continues its war of aggression. The Secretary General of the Ministry of Foreign Affairs Jonatan Vseviov will take part in the discussion on Russia’s aggression in Ukraine and the global security situation more broadly. The Ambassador of Sweden to Estonia Ingrid Tersman will participate in the discussion on cooperation within NATO and strengthening European security.

The delegations of Foreign Affairs Committees will take part in a commemoration of victims of the 1941 June deportation in Kudjape cemetery and lay flowers on their memorial. They are also scheduled to visit Baltic Workboats in Nasva.

Other members of the Foreign Affairs Committee of the Riigikogu to take part in the meeting with Baltic colleagues are Ester Karuse and Luisa Rõivas.

Riigikogu Press Service
Karin Kangro
+372 631 6356, +372 520 0323
karin.kangro@riigikogu.ee
Questions: press@riigikogu.ee

Link uudisele: Baltic Foreign Affairs Committees meet in Kuressaare

Source: Parliament of Estonia

Estonian Defence Forces joined the European Union’s defensive maritime security operation Aspides

By
Helena-Reet Ennet
-

NordenBladet —As of Friday, June 14th, the Estonian Defence Forces is represented in the European Union’s Naval Force Operation Aspides, which purpose is to safeguard maritime security and civilian shipping in the Red Sea from attacks and threats posed by Houthi rebels. Since the end of 2023, the maritime security situation …

Source: Estonian Defence Forces

Speakers of five countries expect for more decisive actions from pro-Ukrainian coalition

By
Helena-Reet Ennet
-

NordenBladet —

The Speakers confirm that their countries will continue the work on bilateral security cooperation agreements and their implementation, and regard commitments for sustained long term military assistance to Ukraine as a priority. “Comprehensive support to enhance Ukraine’s combat capability in the fight against Russia’s war of aggression, as well as initiatives to ensure the rapid supply of weapons and ammunition to the Ukraine’s armed forces we see as particularly important,” they declare.

According to the joint declaration, the Speakers appreciate the prospect of establishing a NATO-Ukraine Joint Analysis, Training and Education Centre in Poland so that Ukraine can share its experience in combating Russia`s war of aggression. They also recognize that the war effort is more effective without setting limitations to our support. “We reiterate that Ukraine has the right to defend itself according to the international law, and that also includes striking legitimate military targets in Russian territory. Ukraine must be able to hit back the attacks that come from Russia or the occupied territories of Ukraine,” the Speakers say in the joint declaration.

The Speakers welcome the readiness of some countries to join an international coalition and send their instructors to Ukraine, at a time suitable for them, to train Ukraine’s military. “[We] recognize that a significant escalation of the situation, which will pose a threat to Ukrainian statehood, will require more decisive actions from the pro-Ukrainian coalition.” they say.

The Speakers believe that a condition for ensuring sustainable peace in Europe is to secure Ukraine’s place in Euro-Atlantic structures, and expect that the NATO Summit in Washington in July will contribute to defining irreversible Ukraine’s path to membership. They also point out that Ukraine’s accession negotiations with the European Union are a strategic objective for Ukraine and the EU, and therefore, the First intergovernmental conference to open accession talks with Ukraine must be held no later than June. “Poland, Estonia, Latvia, and Lithuania support Ukraine and are ready to share the experience of 20 years of their membership in the European Union,” the joint declaration underlines.

The Speakers also declare continued intensive cooperation between their nations to counter the pressing and pervasive threat of Russia’s neo-imperialist policies. “[We] firmly believe that our collective strength – Poles, Estonians, Latvians, Lithuanians, Ukrainians – is the key to confronting the Russia’s threat and ensuring regional security,” they say.

Besides Hussar, the joint declaration was also signed by Daiga Mieriņa from the Parliament of Latvia, Viktorija Čmilytė-Nielsen from the Parliament of Lithuania, Szymon Hołownia from the Parliament of Poland, and Ruslan Stefanchuk from the Parliament of Ukraine.

The Speakers made the joint declaration after their two-day meeting in Białystok, where supporting Ukraine, strengthening the security of Europe and joint resistance to Russia’s intensifying hybrid and cyber attacks was discussed. Regional security was addressed at the meeting also in a wider sense, by discussing the cooperation between local governments, cross-border projects, science and culture cooperation and youth exchange. The Speakers of parliaments also met with local young people, with whom they exchanged ideas about the security situation in Europe and possible further developments.

The text of the joint declaration by the Speakers in English and in Estonian.

Riigikogu Press Service

Link uudisele: Speakers of five countries expect for more decisive actions from pro-Ukrainian coalition

Source: Parliament of Estonia

The Bill on supplementary budget passed the first reading in the Riigikogu

By
Helena-Reet Ennet
-

NordenBladet —

The Bill on supplementary budget passed the first reading

The aim of the Bill on the Supplementary Budget for 2024 (456 SE), initiated by the Government, is to ensure the financial stability and sustainability of the country.

Minister of Finance Mart Võrklaev explained that, on 8 December 2023, the Riigikogu had adopted the state budget for 2024, which had a revenue volume of approximately 16.7 billion euro and an expenditure volume of 17.7 billion euro, and an investment and investment subsidies budget of approximately 1.9 billion euro.

“According to last year’s summer economic forecast, on the basis of which the Government prepared the 2024 budget, Estonia’s public finances were in a difficult situation. The main problems stemmed from a long-term budget deficit and rapid expenditure growth outpacing revenue growth. The deficit was exacerbated by soaring interest costs,” the minister admitted.

According to Võrklaev, the state budget for 2024 has been adopted in such a way that it contains decisions in the order of 500 million euro to improve the budget and put it on a sustainable path. This follows savings decisions totalling around 850 million euro over the period 2024–2027. This includes both last year’s ministerial savings and making allowances for families with many children more affordable for the state.

Võrklaev noted that this year’s spring economic forecast, published on 3 April, was more pessimistic than the previous one. The economic recovery has been slower and so tax revenues have been lower. “If the state receives less revenue, it will have to make additional efforts to rein in spending as well. To this end, the Government decided to make a negative supplementary budget for 2024,” the minister said.

Reducing the state budget deficit is a preparatory step for drafting next year’s national budget where it will have to be ensured that up to 80% of the austerity measures will be of a permanent nature and meet the target of reducing budget deficit in future years. In order to bring the general government deficit below 3% of GDP this year and to comply with European Union budgetary rules, it has been decided to bring government revenue and expenditure closer together by 183 million euro, with a budgetary impact of 173 million euro.

Including the supplementary budget measures, this year the general government deficit will reach 1.19 billion euro, or 3% of GDP. The negative supplementary budget includes 115 million euro in savings measures and 68 million euro in revenue measures. All ministries and agencies, as well as public foundations, will contribute to savings, saving mainly on their operational and management costs. The amount of savings for ministries will be in the order of 63 million euro.

Võrklaev said that the Government did not plan to cancel major investments, but the state of the budget would be affected by the postponement of some investments. The agreement is that investments should be put in place as soon as possible. “We have set a target that 70% of investments and investment subsidies will have to be committed by August this year in order to implement the investment budget to the maximum extent by the end of the year. The task of the supplementary budget has been to take an honest look at which investments can be delivered this year and which ones cannot,” the minister said.

The negative supplementary budget will not reduce funding for national defence which is the highest priority sector. However, the Ministry of Defence, in solidarity with others, is finding ways to save on labour and management costs. The funds released will be channelled into improving defence capabilities.

In the area of government of the Ministry of the Interior, the saving will come at the expense of one-off costs in the order of 3 million euro. This time, the budget savings measures do not concern the foundations of museums, theatres or concert organisations, or legal persons governed by public law. Hospitals have been given a guideline to improve their budgetary position by reducing operating costs to the extent of 1%. The level of research and development and innovation expenditure will be reduced to 1% of GDP, taking into account the revised GDP forecast, while maintaining the agreed target.

To increase revenue, we have decided to increase the amount of dividends from the State Forest Management Centre and Elering Ltd. In addition, the reserve of the Government of the Republic, both unallocated and earmarked, will be reduced.

The aim of the supplementary budget is to ensure the country’s financial stability and allow the Government to respond flexibly to different situations and needs that may arise during the year. “A negative supplementary budget is one of the necessary steps to achieve this goal,” Võrklaev said.

The Chairman of the Finance Committee Annely Akkermann gave an overview of the discussion that had taken place in the Committee.

During the debate, Urmas Reinsalu (Isamaa), Priit Lomp (Social Democratic Party), Andrei Korobeinik (Centre Party), Maris Lauri (Reform Party) and Kert Kingo (Estonian Conservative People’s Party) took the floor.

The Estonian Centre Party Group moved to reject the Bill at the first reading. The motion was not supported because 15 members of the Riigikogu voted in favour, 50 were against and there was one abstention. The first reading of the Bill was concluded and the deadline for submission of motions to amend was set for 4 p.m. on 12 June.

The Riigikogu heard replies to three interpellations

Prime Minister Kaja Kallas replied to the interpellations submitted by members of the Riigikogu concerning the increase of the pioneer capability of the war-time Defence Forces in light of the experience of the present stage of the Russian-Ukrainian war  (No. 607), Ukraine’s accession to the European Union (No. 613) and the non-taxation of the extraordinary profits of banks (No. 615).

At the beginning of the sitting of the Riigikogu, the justice of the Supreme Court Oliver Kask took his oath of office.

Urve Tiidus took the floor during the open microphone.

The sitting ended at 5.27 p.m.

Photos (Author: Erik Peinar, Chancellery of the Riigikogu)

Verbatim record of the sitting (in Estonian)

Video recording will be available to watch later on the Riigikogu YouTube channel.

Riigikogu Press Service
Gunnar Paal
+372 631 6351, +372 5190 2837
gunnar.paal@riigikogu.ee
Questions: press@riigikogu.ee

 

Link uudisele: The Bill on supplementary budget passed the first reading in the Riigikogu

Source: Parliament of Estonia

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