Ülle Madise said that the amendment to the State Budget Act does not create a conflict with the Constitution. She maintained her earlier opinion that the activity-based annual budget does not comply with the Estonian Constitution. This budget has been presented to the Riigikogu since 2020.
According to the Estonian Constitution, the preparation of the state budget is the responsibility of the Riigikogu. Both under the current law and the new draft, some areas remain to be decided by the government. In Madise's view, the decision-making power over the state budget has shifted from the parliament to the government and ministries.
The Ministry of Finance's draft does not change the nature of the annual budget. Madise found that according to the Constitution, the Riigikogu must establish a budget for state revenues and expenses each year. The Riigikogu allocates funds to the government for spending and makes changes if necessary.
Madise said she was pleased that the draft precisely describes how to grant and reclaim subsidies. It also regulates the calculation of delays and interest. She also praised that the formation and use of government reserves are described in more detail.
In the previous decade, Estonia began using an activity-based state budget. The 2020 budget was the first to be fully based on the activity-based principle.