The ministers submitted proposals to reduce the expenditure planned for the 2026 budget by a total of 29.3 million euros. This will open up an opportunity for the government to cover additional needs in priority areas this year.
“We will cut expenses elsewhere for further border construction, artificial intelligence investments, and minor changes. Overall, the budget balance will improve by 15 million,” said Minister of Finance Jürgen Ligi.
In 2026, 10.98 million euros will be directed to the Eesti.ai initiative to increase people’s AI skills, increase the efficiency of the public sector, improve healthcare services, and strengthen the position of education and the Estonian language in the age of artificial intelligence. The broader goal of the initiative is to grow the Estonian economy and train at least 100,000 people to use artificial intelligence skilfully. The Eesti.ai project plans, among other things, new solutions for the PAI information system for family physicians, as well as eAmbulance AI solutions that reduce the documentation burden on healthcare workers.
According to Prime Minister Kristen Michal, the experience of Estonia’s digital state has created a strong foundation for the rapid and intelligent adoption of artificial intelligence. “Eesti.ai will help bring artificial intelligence to where it will be most useful. An investment in artificial intelligence is an investment in Estonia’s future, as it grows the economy and increases the value of people’s work,” said Michal.
A significant part of the additional funding will be aimed at strengthening national security. 17 million euros will be allocated for the construction of the eastern border to pay for the contractual obligations already taken.
“This is crucial news in the context of the whole of Europe, because it is the external border of the EU. The decision of the Estonian government now provides certainty that we do not have to think about half-baked solutions but can move forward with all the planned work and complete the construction of the best and safest European external border next year,” said Minister of the Interior Igor Taro.
In addition, 941,057 euros will be allocated to the Ministry of Culture, which will be transferred to the Cultural Endowment of Estonia. These are donations received from entrepreneurs to the Ministry of Finance, the purpose for which is to cover the shortfall resulting from the two-month special tax on remote gambling in the Gambling Tax Act. The Ministry of Finance received 719,640 euros as donations from entrepreneurs. The Government of the Republic will compensate the Cultural Endowment of Estonia for the missing revenue of 220,000 euros from the state budget.
In addition to the revenues and expenses reflected in the State Budget Act, the investments of Riigi Kinnisvara AS and AS Hexest Materials will also be specified. Taking into account all the changes, the budget position of the government sector will improve by 15 million euros in 2026, but its percentage of GDP will remain at the level of the spring forecast. The budget deficit for next year will decrease by 0.1% of GDP as a result of the proposals, and the improvement of the budget balance will continue in the autumn during the preparation of the state budget and the state budget strategy.
The Minister of Defence has proposed bringing forward the budget planned for 2027 and 2028 for the financing transaction of the explosives factory AS Hexest Materials to 2026. The supplementary budget also takes into account the cancellation of the excise duty increases decided on 12 March.
