OREANDA-NEWS  On 25 February was announced, that Estonian government presented negative supplementary budget to Riigikogu (Parliament).

In his political statement after the presentation of the negative supplementary budget to the Riigikogu, Prime Minister Andrus Ansip said that with the adoption of the supplementary budget, the state will keep some reserves for the future as well and preserve the hope of joining the euro area by 2011.

“Estonia has collected considerable reserves over the past few years, which will ensure the sense of security and solvency that we badly need at this moment of crisis, but eating up our savings as fast food cannot be a rational solution to the situation. The cutting of budget expenses is indeed painful and unpleasant, but still essential,” said the Prime Minister when speaking in front of the Riigikogu.

When drawing up the cutback plan, the government refrained from increasing direct and indirect taxes. “According to the economists involved in the preparation of the cutback plan, increasing the tax burden during an economic recession would have a negative effect,” said Ansip.

The government association also preserved the current system for the payment of the family benefit and parental benefit to provide young families with the sense of security they need during tough times. “The preservation and continuation of the Estonian people is worth more than a few kroons in additional savings,” said the head of the government. But the Prime Minister also noted that the cutback plan affects every person, entrepreneur, employee and pensioner of Estonia, one way or another, directly or indirectly. “In tough times, we just have to stick together,” said Ansip.

According to the Prime Minister, the year 2009 will not be the first or last hard period for the Estonian people and state. “But we will manage, we always have,” said Ansip, according to whom the government will start preparing the budget for next year, 2010, pretty soon. “This process is definitely not simpler and easier than now, but by making the right and fast decisions, we can come out of this recession phase of the economic cycle faster and more efficiently than others,” Prime Minister Ansip stated.