Minister of Finance Keit-Pentus Rosimannus (Reform) said that although inflation might continue next year, official estimates did not see it happening, which is why the Ministry of Finance could not take the possibility into consideration when drawing up next year’s budget.
Pentus-Rosimannus said when speaking of inflation that it would continue into next year, but significant growth was not expected.
“When it comes to the entire wage situation, the decision of there not being a major wage increase in the public sector means the wage growth in the most sensitive sectors is significant,” the finance minister said.
She pointed to the 12% increase to rescue workers’ wages next year and the 7% increases to the wages of teachers and culture workers.
“Benefits are necessary for those that are in a truly complicated situation,” Pentus-Rosimannus said about why the government would not lower VAT on electricity.
She added that it would not be fair to distribute money to the wealthy and those that needed help equally.
At the same time, the finance minister noted that electricity prices were volatile and if the current price rate stayed for longer, planned costs must be looked at and cuts and redistributions must be found.
“Everyone is looking at having to adjust consumption,” Pentus-Rosimannus said.
She said it was normal that people would consume less and consider their electricity use more carefully.
The minister also pointed out that as of September, the state budget had already received 100% of the planned income tax from legal persons.
Pentus-Rosimannus said there was no divide in the government coalition of Reform and Center about one wanting to spend more and the other trying to save. She did criticize Tallinn mayor Mihhail Kolvart (Center) and said the minister was constantly making decisions that were contrary to those of the government.
“In this case, the children are victims,” the finance minister said. (ERR/Business World Magazine)
