Total investment funds in 2025 state budget to increase by a third
The total volume of investments in the 2025 state budget will increase by a third compared to this year. The largest investments will be made in defense capabilities, though most of those funds will leave Estonia.
The second priority in next year's state budget is infrastructure, with the continuation of the Rail Baltica project and construction of a four-lane highway connecting Estonia and Latvia.
The total amount of investments planned for next year's state budget is €1.31 billion.
Most of the investment funds – 63 percent – will go to the Ministry of Defense. Investments by the Ministry of Climate will account for 25 percent, most of which will be used for infrastructure development. Investments by the Ministry of the Interior and the Ministry of Justice will each account for 3 percent, while the Ministry of Education will receive only 2 percent of the total amount.
In reality, the funds the state spends next year will come from various budget lines and programs. The Ministry of Defense's budget will increase to €2.4 billion. Half of this will go towards the purchase of defense equipment as a combination of expenditure and investment. The volume of investments in the budget will increase by half. Most of that money will be spent in Estonia.
"The goal is undoubtedly that through these investments and through the Estonian state buying more from Estonian defense industry companies, more money ought to remain in the Estonian defense industry. Of course, the reality is that at the moment, we mostly do not have these capabilities and need to purchase the equipment from outside," said Mait Palts, head of the Estonian Chamber of Commerce and Industry.
"It is very difficult to say right now whether and how much of this will directly reach the Estonian economy, because a lot of purchases in the defense sector are imports. Certainly, in cooperation with the Ministry of Defense, there will also be a defense industry park and real industry will come here. This will reach the Estonian economy one way or another," said Minister of Economic Affairs and Industry Erkki Keldo (Reform).
The second priority in the state budget is the development of transport infrastructure, toward which nearly €1 billion will be invested next year. However, that amount will also come from various programs. Of the investments, €435 million will go to Rail Baltica with €283 million for roads. Work is set to begin on the long-awaited Libatse-Nurme section of the Tallinn-Pärnu highway as well as the Tallinn-Tartu highway in Imavere.
"The plan is that by 2027, a total of 42 kilometers will be completed in the direction of Pärnu, and work will also begin in Imavere. Design work and land purchases will also begin. Design work will also be completed for the section from Imavere to Mäo," said Minister of Infrastructure Kuldar Leis (Reform).
A total of €179 million will be allocated to the development of Estonia's business environment.
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Editor: Michael Cole, Johanna Alvin
Source: "Aktuaalne kaamera"
