In 1989, he became the Vice-Chairman of the Council of Ministers of Estonian SSR and the Head of the State Plan Committee. In 1990, he was the Minister of Economic Affairs. On 3 April 1990, he was appointed the Chairman of the Council of Ministers. When Estonia declared its independence on 20 August 1991, he became the first Prime Minister of the Republic of Estonia. His government was in office until 29 January 1992, when he resigned after supplementary problems and a continuing decline in economy. Most of his governing time was characterized by hyperinflation and ever increasing deficit of goods. "Purchase cards" and ration stamps were introduced. During the winter of 1991/1992 preparations were made to evacuate the dormitory regions of Tallinn due to shortage of fuel. On 31 December 1991, people stood for hours in the bread queues, many were eventually left without bread. In January 1992, butter disappeared from the shops. Savisaar managed to win a vote of non-confidence, being mostly supported by his Popular Front, left-wing parties and the Intermovement, but stepped down when it turned out impossible to introduce a state of emergency. He was replaced by a technocratic government under Tiit Vähi.