Tallinn Mayor Peeter Raudsepp (Isamaa) said the city's budget volume is similar to last year's, with expenditures totaling around €1.3 billion. Exact figures will be confirmed once the technical review of budget lines is complete and the budget is approved by the city government.

According to the mayor, efforts have been made to identify cost-saving measures in the budget.

"Our plan is to avoid major, across-the-board layoffs. However, we will review staffing levels — we'll reduce the number of positions where necessary and increase them to better manage public order and safety where needed," Raudsepp said.

Employees in the city system can expect a pay raise.

"There are nearly 20,000 people working in the city system, down to hospital doctors. If wages have remained flat for several years, then of course the city, as an employer, must keep up with market conditions," Raudsepp said.

Deputy Mayor Tiit Terik (Center) said the city will not be able to avoid taking out a loan this year, though he did not specify the potential loan amount.

"We're reviewing the numbers to determine how much we need to borrow. Naturally, we also have to service our existing loans. So it's important to keep in mind that 2027 and 2028 are also ahead of us and we must not make loan decisions today that would lock in the city's borrowing capacity for the years to come," Terik said.

Investment spending will be reduced by nearly €100 million. According to the mayor, this includes additional investment requests submitted by various city departments. Terik noted that one of the projects that might be postponed is the construction of a central museum storage facility, which would cost several tens of millions.

"Yes, the architects have done a good job. We're able to present proposals and drafts. But whether we'll actually get to pouring concrete in 2026 or 2027 — that's a question I'm not particularly optimistic about," Terik said.

The opposition Reform Party in the capital considers the postponement and cancellation of investments a major concern.

"This is the biggest red flag that has emerged from public statements. What does that €100 million represent? Investments are development. And this amounts to putting development on hold. That is certainly not in the interest of the hardworking people of Tallinn," said Henri Arras, deputy chair of the Reform Party's Tallinn branch.

The city council's first reading of the budget is scheduled for January 22.

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