Kallas: State must make necessary investments

Although in the face of economic growth and rapid growth in construction prices, the state should take a wait-and-see attitude, some large investments still need to be made, said Prime Minister Kaja Kallas (Reform) said on Thursday.

Speaking about next year’s budget on Thursday evening’s “Aktuaalne kaamera”, Kallas said, despite the forecast of 10 percent economic growth next year, Estonia will only reduce its budget deficit rather than balance it completely.

This is because salaries for public sector workers, such as health care workers, teachers and emergency service workers and police officers, need to rise.

“And we need investment to be sustainable,” Kallas added.

Kallas said she believes in better times the state should invest less, but some plans must be implemented.

“We have tried to take this into account so as not to give a boost to price rises. But we will definitely make some big investments, Rail Baltic and infrastructure investments that cannot be postponed,” she said.

Read more: ERR.EE

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