Estonian Prime Minister presents 2027 state budget draft

Estonian Prime Minister Kristen Michal has presented the 2027 state budget draft to the Riigikogu. The government aims to reduce the budget deficit from a projected 4.9 percent of GDP to 4 percent, requiring approximately 235 million euros in additional cost cuts.

A primary focus of the budget is national security, with defense spending set to remain above 5 percent of GDP. The Prime Minister emphasized that Estonia must be prepared to fulfill its own defense obligations. Other key pillars include economic growth, technological adoption, and infrastructure development.

Investment plans include a 3 percent increase in salary funds for teachers, cultural workers, police, and rescuers, totaling over 32 million euros. Infrastructure projects such as Rail Baltica will continue, and road construction will see increased funding, including nearly 70 million euros from car taxes.

During the parliamentary session, EKRE representative Rain Epler criticized the government's approach, questioning the transparency of budget allocations and expressing skepticism regarding the speed and funding of the Rail Baltica project.