This follows a Riigikogu Finance Committee review of amendments submitted between the second and third readings.

Committee vice-chair Andrei Korobeinik (Center) said that while any improvement of the budget position is a positive thing, further opportunities for savings should still have been identified, given the current substantial state budget deficit.

A total of 21 amendment proposals were submitted by the six Riigikogu party factions, plus one consolidated proposal compiled by the finance committee itself in conjunction with the Ministry of Finance. This latter proposal was approved.

Finance Committee Chair Annely Akkermann (Reform) said those proposals that were rejected had not aligned with achieving the objectives set in the budget.

Akkermann added that the consolidated proposal, prepared in cooperation with the Ministry of Finance, reallocates expenditures and investments in line with the next year's draft budget structure. "These are related to reallocations of funds internally and between government institutions," said Akkermann.

The main source of coverage proposed again was the government reserves.

Under the accepted amendments, an additional €46.6 million is to be redirected from the Ministry of Education and Research's budget to the local government support fund, to provide extra financing for general education schools due to updated student numbers. This covers salaries for teachers, principals, and deputy principals, operational support, learning materials, in-service training, and school lunches.

State budget allocations to municipalities for school expenditures are based on the number of students recorded in the Estonian Education Information System (Eesti hariduse infosüsteem) as of November 10 in the year before the planned budget year.

Additionally, the Ministry of the Interior is to transfer €28.8 million originally allocated for salary increases of internal security personnel into the budgets of institutions under its governance.

This includes a 10-percent increase in the baseline salary fund for government-supported institutions: the Police and Border Guard Board, Emergency Response Centre, Estonian Academy of Security Sciences, and Internal Security Academy.

These funds target positions with salaries below market levels, especially frontline internal security personnel, lecturers, and roles with high turnover.

The 2026 draft state budget law projects total revenues of €18.6 billion, expenditures of €19.5 billion, and investments of €1.3 billion. Revenues will rise by €843 million (4.7 percent), expenditures by €1.15 billion (6.3 percent), and investments by €305 million (32 percent).

The draft estimates a government sector deficit of 4.5 percent of GDP, within the EU's exceptional clause for defense spending. Debt will increase by €1.7 billion, reaching 25.9 percent of GDP. The tax burden is expected to drop from 36.6 percent to 35.2 percent of GDP.

The largest expenditure increase is defense, rising by €844.5 million, while income tax cuts will reduce revenues by €780 million.

The Culture Ministry's budget will increase by €1.7 million for institutional capacity-building and development projects. Of this, €151,605 is for salary increases for cultural workers, funded by a €9 million reduction in the Climate Ministry's maritime passenger transport support. This results in a net budget improvement of €6 million.

The Riigikogu breaks up for its winter recess on Thursday, December 18, meaning next year's state budget bill has to pass by that date anyway.

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