Tallinn coalition begins drafting city's 2026 budget
Tallinn's governing coalition has begun drafting the annual budget for 2026. A significant portion of the expenditure is earmarked for education and raising the salaries of city employees.
The size of Tallinn's 2026 budget is roughly the same as last year's – totaling €1.3 billion. A large portion of the budget will be used to support education and the transition to Estonian as the only language of instruction in particular. Kindergarten fees are also set to be abolished, and teachers will continue to receive salaries, which are €100 a month higher than the national minimum wage.
"Education is definitely the area that accounts for a large part of the budget, but of course there are also facilities that improve our educational infrastructure – schools, kindergartens – and a swimming pool for our athletes, which is something the Center Party has been talking about for a long time," said Tallinn Deputy Mayor Tiit Terik (Center).
The City of Tallinn employs around 15,000 people, who are also expecting a pay rise when the new budget is confirmed.
"Salaries in the entire city system have remained unchanged for years, so it is extremely reasonable and important for us to review and update the salaries of people working in the city system," said Mayor of Tallinn Peeter Raudsepp (Isamaa).
At the same time, Tallinn City Government is also considering making layoffs if possible. Investments have to be cut, including those related to construction projects that were planned by the previous administration. The city's annual investment capacity is approximately €200 million.
"If we have already started work, we will definitely see that through to completion, meaning that we will not leave any construction projects unfinished. However, for those projects still at the design phase or the architectural competition phase, then the start year will not be 2026, but 2027 or 2028 instead," Terik explained.
"The goal is to revisit and reevaluate old projects, but we can't talk about any of them specifically until we have discussed and agreed on them and then presented them," added Raudsepp.
A loan will also have to be taken out in order to implement the budget, though the amount will be limited.
Tallinn's draft budget for 2026 is due to be ready in a week. The first reading is scheduled for January 22. According to Estonian law, the budget has to be adopted by March.
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Editor: Michael Cole, Johanna Alvin
Source: "Aktuaalne kaamera"
