The Reform Party supports the Bank of Estonia's proposal to be cautious in finance. They want to reduce the budget deficit by 0.5% every year. The debt burden should remain at 30%.
The Reform Party calls on all parties to help reduce the state budget deficit. Next year, the deficit could be 4% of GDP. After that, it should be reduced year by year. By 2028, the deficit should be 3.5%, then 3%, and finally 2.5% of GDP.
National security and defense capability are very important. Therefore, the Reform Party does not plan to cut defense spending. Borrowing may be necessary in crises, but a constantly increasing deficit cannot be normal.
The Reform Party wants the state to work more efficiently. Taxpayers' money should be used more wisely. It is necessary to abandon expenditures that are no longer needed. State revenues and expenditures must be balanced.
On Wednesday, the Social Democratic Party invited party leaders to a meeting. They want to discuss the Bank of Estonia's proposal on public finances. Reform Party representative Maris Lauri said their plan is not new. They have been talking about it for several weeks.
According to the Bank of Estonia, Estonia's debt in Europe is small but growing rapidly. Interest payments are rising, which affects the budget. A 0.5% saving means about 300 million euros per year. Where this money will come from will be decided during budget negotiations.
The Reform Party's principle is that security spending will not be reduced. Changes must allow the economy to grow and people's lives must not worsen. This is a difficult process.
The Riigikogu elections will take place on March 7, 2023.