The ministry wants the funding to come from the budget rather than the state reserves as usual.

However, the Riigikogu Finance Committee and National Audit Office say the money should come from the budget.

Minister of Regional Affairs and Agriculture Hendrik Johannes Terras (Eesti 200) said paying money out of the reserve fund is not sustainable. When signing contracts with operators, there is no certainty that the state will be able to meet its obligations.

Additional funds are needed every year to cover annual rising costs, such as infrastructure fees, increases in taxes and charges, and changes in the consumer price index and fuel prices. The ministry has no way to keep these under control.

For example, during the years 2021–2024, when the public transport subsidy was frozen in the state budget, the consumer price index rose by 41 percent, fuel prices by 27 percent, and state-owned companies' infrastructure fees by about 30 percent, Terras noted.

Rail transport needs an extra €9 million

€120 million has been allocated for public transport subsidies in 2026, but the ministry calculates €54 million will be needed.

Additional top-ups – between €65 and €77 million each year – will be required in the following years.

In 2026, €9 million is needed for the electrification of the Tallinn-Tartu railway, the new Tartu-Riga rail connection, and additional train services.

The projected cost of rising infrastructure fees and indexing in 2026 amounts to €6.7 million.

The issue was discussed at a government cabinet meeting in February, and it was agreed to discuss it as part of the 2026–2029 state budget. 

The public transport subsidy covers domestic bus, rail, air, and ferry connections. Public transport is used by 33 million passengers annually.

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