Wage rise central to next year budget

Photo: SCANPIX

Among other things, state budget talks will be revolving around wage rise for policemen, subsistence level lift, and courts reform.

Knowing that «money is scarce and desires many», the government today kicked into discussions of next year’s budget, starting with hearings of finance ministry’s cautious economic forecasts and initial overviews of «inter-minister» talks.   

Even with the picture explicitly clear to all cabinet members: finance ministry will say there is no money, the ministers will be attempting to get the needed extra sums into several fields.

The ministers do realise that the state is not exactly flush with funds, and they will be trying to avoid trampling over each other. The temptation surely is there, as elections year never fails to leave its mark on budget talks; and the desire to please the people is greater than average. «Can’t say for sure... Rather, 2014 is an interim year; and keeping the Riigikogu elections in mind, putting together the 2015 budget will be a trial more severe,» reckons a government member.

Still, the main deadlines have been set: pursuant to coalition contract, income tax will be lowered by 1 per cent, in 2015; and next year’s excise rise is already in place. 

(Coalition parties have also arrived at the consensus that income-tax-free minimum needs to be lifted; by how much? Is where the parties differ: IRL thinks of a €500 limit, Reform Party not being that optimistic.)

Economy minister Juhan Parts would like to be guided, at the talks, by the common trouble that we now share with the Nordic Countries – economic growth has disappointed. «All will have to be based on the assumption that the budget must support economic growth. We were overly optimistic regarding revival in construction sector – it has not recovered,» said Mr Parts. In his opinion, the talks will also seriously centre on wages, increase of income, facilitating moderate consumption. And it will be vital, in the minister’s mind, how fast we will be able to bring money unto our market from next year’s EU budget.

At least partially, interior minister Ken-Marti Vaher has the answer to Mr Part’s wishes: namely, he is sticking to his intent to have policemen’s wages rise 13 per cent. «I wouldn’t want to be banging the [battle] drums ere the more definite cabinet discussion has been held,» said Mr Vaher. «But, decidedly, interior ministry is applying for additional means for police wage rises in next year’s budget.»

First and foremost, says the minister, wages ought to rise for the high-risk posts i.e. for people who lay their lives and health on the line to safeguard others. Wages also will need to rise for police officials dealing with serious hidden and organised crime; as well as for those with the lowest wage levels in the organisation. Mr Vaher realises that, at the current state of affairs, 13 per cent might be an exaggeration, but even seven-eight per cent would be a decent achievement.

Minister of justice Hanno Pevkur wants extra money to keep courts reform going: thanks to the employment of advocate-generals, Harju County Court has, as compared to last year, considerably increased the amount of cases handled; Mr Pevkur desires to see the same happen, step by step, in other county courts as well (starting with Tartu, for instance).

Courts reform being one of the supporting pillars of Mr Pevkur’s main focus: faster legal proceedings. Also, a real estate project should be launched: as, for Estonia’s 100^th jubilee, he wants Tallinn to boast a new courthouse. «Compared to the times I was social minister, however, my wishes are more modest, by multiple times,» said Mr Pevkur.

The largest mouthful of fresh budget will be bitten off by Ministry of Social Affairs. The minister, Taavi Rõivas, desired not to launch into budget compilation via media; it may still be predicted that  subsistence level rise to €90 will receive governmental approval, as already now food basket price is exceeding the current €76 subsistence level. The step ought to bring relief to 10,000 households struggling at the point of poverty, hopes Mr Rõivas.

«For starters, let’s hear the finance ministry economic forecast. Sure, social ministry is interested in offering security to the most vulnerable. I have areas where I really desire to take a real big step forward,» noted Mr Rõivas.

Minister of the environment Keit Pentus-Rosimannus introduced her plans regarding the nature. «When it comes to investing into nature, it is to be assumed that if all is well with it and the living environment is clean, then less money will be spent on health problems,» said Ms Pentus-Rosimannus.

Firstly, she would like to make direct investments into nature conservation – Soomaa, Endla marsh, Matsalu National Park, and Alam-Pedja nature conservation area will next year get a financial injection, mostly for restoration of marshland and swampland water regime. Also, €100m are on their way from the EU 2014 budget to make the environment cleaner, healthier and better kept. «Honestly, never before have we had such financial opportunities for Estonia’s conservation,» admitted the minister.

The other priority is the woods. Next year, the ministry hopes to complete an e-solution unique in the EU, making the totality of Estonia’s forests viewable to all in a virtual register.

And, thirdly – the sea. «The Tallinn Bay is a definite example of seaside unkempt, which naturally frustrates people,» stated Ms Pentus-Rosimannus, promising that they stand ready to invest up to €5m into tidying up the water line of city centre and the Merivälja area.