# Estonian government fiscal and sector investment planning > Live situation record from CLSTR: https://clstr.news/situations/estonian-government-fiscal-and-sector-investment-planning > Updated: 2026-09-29T10:59:57.000Z. Sources: 5. Developments: 2. In late August 2026, Estonian Prime Minister Kristen Michal announced a commitment of 546 million euros from the upcoming European Union budget period to support the agricultural and food sectors. This move aimed to increase competitiveness and address lagging income levels within the sector, following discussions with the Estonian Chamber of Agriculture and Commerce. By late September 2026, the government's fiscal focus expanded with the presentation of the 2027 state budget draft to the Riigikogu. This draft outlines a plan to reduce the budget deficit from 4.9 percent to 4 percent of GDP through approximately 235 million euros in cost cuts. Key priorities in the draft include maintaining defense spending above 5 percent of GDP, increasing salaries for teachers, cultural workers, police, and rescuers, and continuing infrastructure projects such as Rail Baltica. ## Timeline ### 2026-09-29: Estonian Prime Minister presents 2027 state budget draft Prime Minister Kristen Michal presented Estonia's 2027 budget draft, prioritizing defense spending above 5% of GDP and aiming to reduce the budget deficit to 4% through significant cost cuts. 3 sources. https://clstr.news/cluster/estonian-prime-minister-presents-2027-state-budget-draft ### 2026-08-31: Estonia to invest 546 million euros in agriculture and food sectors Prime Minister Kristen Michal has committed 546 million euros in EU funds to strengthen Estonia's agricultural and food sectors, addressing concerns over fund allocation and sector competitiveness. 2 sources. https://clstr.news/cluster/estonia-to-invest-546-million-euros-in-agriculture-and-food-sectors --- Cite as: Estonian government fiscal and sector investment planning. CLSTR, https://clstr.news/situations/estonian-government-fiscal-and-sector-investment-planning