Estonia’s government has approved a draft budget for 2027 with €20.2 billion in expenditure, €19.4 billion in revenue and a projected general government deficit of 4 percent of GDP, ERR reports.
National defence will receive €2.2 billion, keeping defence spending above 5 percent of GDP, with funding for ammunition, drones and stronger air and missile defence capabilities.
The government will continue its agreed 10 percent spending cuts for 2025–2027, while increasing teachers’ pay and funding preparations for nuclear energy.
Business development measures include €134 million for research, development and innovation, alongside more than €30 million earmarked for artificial intelligence and €21 million for cybersecurity.
Rail Baltica will receive €445 million, although the government plans to slow the pace of investment to limit pressure on the budget and construction costs.
Read more: ERR.EE
