The Auditor General and the Chancellor of Justice have previously criticized Estonia's state budgets. They said the budgets are too complex. It is difficult for the public and the Riigikogu to understand where the state's money goes.
The Ministry of Finance has now prepared a plan. The plan shows how to amend the State Budget Act to make it more understandable and transparent. For example, the law will show the size of each institution's budget. It will also be possible to see how much of the expenditures are mandatory by law and how much are voluntary.
Deputy Chairman of the Riigikogu Finance Committee Andrei Korobeinik said the law does not fulfill its purpose. In fact, the state budget will become even more complex. He said the Minister of Finance wants to give ministries more opportunities to redistribute money. The role of parliament will diminish.
Finance Minister Jürgen Ligi found Korobeinik's words to be malicious. Ligi said flexibility in the budget is important. If there are too many strict restrictions in the budget, much of the money remains unused. Flexibility makes the use of money more reasonable and reduces bureaucracy.
Reform Party member Aivar Sõerd said that although there are many changes, the Ministry of Finance is not changing the core of performance-based budgeting. Budget expenditures are presented broadly, but the law does not specify to whom, for what purpose, and how much money is allocated.
Sõerd said there are major problems with state budget indicators. Many indicators are missing or based on outdated data. The indicators do not necessarily reflect the effectiveness of money use.
Finance Minister Ligi said he does not know whether the draft law will change things related to indicators. He asked not to be questioned about the details of the draft.