Government allocates 44.2 million euros to broad-based national defence in a supplementary budget

15.05.2025 | 12:55

Stenbock House, 15 May 2025 – The government approved and will send a draft supplementary budget for 2025 to the Riigikogu. The supplementary budget increases revenues by 26.6 million euros, expenditure by 46.5 million euros, and investments by 32.5 million euros. The government will channel 44.2 million euros of the expenditure and investments into broad-based national defence to increase crisis resilience.

“The additional funding in this year’s supplementary budget is aimed at increasing the preparedness of those areas that need to function not only for national defence, but in any major crisis,” said Prime Minister Kristen Michal. “This sum of 44 million euros will be used to boost internal security, increase the reliability of the medical system, improve the crisis response capacity of the foreign service, and secure the operational continuity of the digital and media sector.”

The supplementary budget will, for example, give the Police and Border Guard Board extra funds for arms, defence equipment, and communication devices. In the health care sector, support will be provided to make Pärnu Hospital more crisis-resilient and to ensure the security of oxygen and blood supplies. The Ministry of Foreign Affairs will be better prepared to operate outside of Estonia, the reliability of the Luxembourg data embassy and the state cloud systems will be strengthened in the digital state, and the continuity of Estonian media outlets in a crisis will be ensured.

The supplementary budget foresees additional expenditure and investments, which will be covered mainly from external resources and additional revenues from the state’s economic activities. These activities were not foreseen in the original 2025 state budget. State revenues are also increasing for the same reason. In general, revenue-dependent expenditure projects are not revised – only completely new activities are added in the supplementary budget.

Although the total volume of public financing transactions remains unchanged, it includes financing transactions of around 25 million euros. 17.5 million euros will be allocated to the Ministry of Economic Affairs and Communications for the SmartCap investment fund, and 7.2 million euros to the Ministry of Finance to recover the contribution for the establishment of the Hexest explosives plant.

The supplementary budget also includes amendments proposed by the areas of government, which have become necessary after the preparation of the draft 2025 state budget and which do not change the total size of the budget.

Government Communication Unit

open graph imagesearch block image