Estonia to hike roadbuilding budget by €100 million next year
The state will allocate €100 million more to road maintenance next year. Four-lane road construction toward Pärnu and Tartu will continue, but upkeep remains underfunded.
The state will more than double its investment in converting main highways into four-lane roads next year, allocating €128 million for the effort. Over the next few years, nearly 45 kilometers of four-lane roads will be completed on the route from Tallinn to Pärnu and over 20 kilometers toward Tartu. Construction will begin on the Mäo–Imavere section of the Tartu highway. The national road maintenance plan will also include a northern bypass for Tartu and a southern bypass for Keila.
"This year, the road maintenance plan totals around €180 million, but next year it will grow by about €100 million, which is encouraging — this marks a turning point after a low point in funding for national roads. From 2026 to 2029, the total volume of the plan could exceed €1 billion. The plan approved this summer was just over €900 million and lacked full budget coverage in the national fiscal strategy. We're genuinely pleased that this funding has now been secured," said Martin Lengi, director of strategic planning at the Transport Administration.
The budget for paving gravel roads with dust-free surfaces will rise from €3 million this year to €12 million next year. However, more funding is still needed to maintain road conditions.
"We've managed to maintain the current level of funding for maintenance. That said, the level should be somewhat higher, because over the last couple of years, indicators such as rut depth and defect rates have started to rise," Lengi added.
According to Infrastructure Minister Kuldar Leis (Reform), the increased funding was made possible by the new car tax, which will remain in place under the current government.
"The main source of the increase is the motor vehicle tax, which will add an average of €85 million per year to the road budget. This will fund both major 2+2 roads and, as a new development, the conversion of gravel roads to dust-free surfaces," said Leis.
Next year should also see the start of construction on the Saatse Boot bypass.
Tarmo Trei, head of the Estonian Association of Infrastructure Companies, welcomed the increase in funding for road development, but said the amount earmarked for maintenance remains insufficient.
"An average of €260 million per year has been allocated for each of the next four years, but a thorough analysis shows that the real need exceeds €500 million. Maintenance means keeping our existing roads and streets in their current condition," said Trei.
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Editor: Marcus Turovski, Johanna Alvin
