Government prioritizes salary increases in budget talks
The Estonian government began discussions on next year's state budget on Tuesday. Raising the salaries of teachers, rescue workers and police officers is considered a priority.
Members of the government arrived for state budget talks on Tuesday to be met by protesting teachers, rescue workers, and police officers. The protesters want salary increases to be one of the priorities in the new state budget.
According to Minister of Education Kristina Kallas (Eesti 200), that will be the case, with slary increases set to be decided on first, followed by tax changes.
"First, we have to decide on salaries, and then we will look at the issue of income tax exemptions and changes to the car tax. It is not the case that we will first do away with tax increases, leaving teachers and rescue workers with zero rises, because that is where that money will be spent. The priority –the absolute priority – is salaries," Kallas said.
The budget talks began with a series of reviews, so it is not yet possible to say what tax changes may be in store. Nevertheless, according to the prime minister, the current economic situation is slightly better than before.
"If tax revenues improve, it will be possible to consider – and I emphasize, it will be possible to consider – eliminating various taxes, primarily income tax. However, that said, the priority for the state budget remains the rapid growth of defense spending," said Prime Minister Kristen Michal (Reform).
According to Michal, teachers, cultural workers, rescue workers and police officers are also the primary roles for which salary increases can be expected next year.
"These are probably the areas or groups that are most likely to see salary increases – we are looking for the means to do so. When it comes to the budget, all the money available is counted, and we look at how it can be accommodated within the rules and where cuts can be made – so we still have some debate on cuts ahead of us. But these areas are the most likely to see salary increases. However, I must repeat that the budget discussions are still two weeks away," Michal said.
The government hopes to arrive at more precise figures in the second half of next week. According to Kallas, it is possible to move towards meeting the promise made to teachers.
"If we were to increase teachers' salaries by 10 percent this year and 10 percent next year, we would easily reach 120 percent of the Estonian average," Kallas said.
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Editor: Michael Cole, Johanna Alvin
Source: "Aktuaalne kaamera"
