Estonia’s budget expenses to rise by almost €1 billion more than revenues in 2026

Stacks of euro bills. Source: Siim Lõvi/ERR

Estonia’s state budget will increase by 9.4 percent – €1.8 billion – next year to €20.9 billion, figures from the Ministry of Finance show. Almost half of the additional money is allocated for defense.

Overall, expenses will increase by €1.4 billion and investments by €0.4 billion.

Of the total budget, €19.6 billion is defined as expenses, which will rise by 7.7 percent (€1.4 billion). Planned investments amount to €1.3 billion, 44.4 percent (€0.4 billion) more than in 2025.

Budget revenues are expected to increase by 5.1 percent (€0.8 billion) compared to this year, reaching €18.6 billion.

The government is forecasting a deficit of €1.6 billion, but due to unexpectedly strong tax receipts, it will likely be smaller.

Read more: ERR.EE

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