A definitive answer on whether and in what form the 2025 state budget cuts have materialized can only be given in the first quarter of 2026.This is because the budget document is prepared based on an activity-based approach, while the aim is to manage it from a traditional cost-based perspective, Auditor General Janar Holm said.
The Riigikogu State Budget Select Committee has sought clarity in its last two meetings on the extent of cuts to administrative costs in the 2025 state budget.
At the first meeting, committee chair Urmas Reinsalu (Isamaa) pointed out that although the coalition had pledged to reduce administrative costs – namely labor and operational expenses, as well as subsidies – by 5 percent, these expenditures are, in fact, increasing.Excluding defense-related special equipment from operational costs, administrative expenses rise by 2 percent.
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