
The Estonian Employers’ Union has sent a number of proposals to the government on the arrangement of public finances, recommending a freeze indexed government spending until economic growth restores or revise their structure on a
permanent basis. Minister of Interior Dealing Lauri Laenemets (right), Prime Minister Kristen Mihal. Minister of Education Christina Callas and Minister of Justice and Digital Technology Liisa Pacosta at a government press conference. Photo: Tairo Lutter
The Union of Employers Estonia has sent the government a number of proposals for the arrangement of public finances, recommending freezing
indexed government spending until economic growth restores or revising their structure on a permanent basis.
The Union’s report sent the day before yesterday said that government spending is growing faster than economic development, are not sustainable, because they require new taxes, increasing debt and could lead to insolvency of the state. The document emphasizes that compared with the decrisis time the most increased spending on social protection and healthcare – by 31% and 17%.
The increase in social spending is first related totheincreaseinpensionsas aresultofindexing.The sustainability ofgrowth,in the view of theUnion,is further undermined byextraordinarypension increases.
Sustainability ofgrowth.