Over €2 billion of last year's state budget unused
Nearly €2.07 billion remained unused in the state treasury in the past fiscal year, which is mostly due to the slow movement of European Union funds, Aivar Sõerd (Reform), a member of the Riigikogu Finance Committee, said.
The Ministry of Finance gave the Finance Committee an overview of the 2025 budget surplus, which, according to preliminary data, amounts to around just over €2 billion.
Sõerd said the money is divided into two larger blocks. The vast majority of — €1.58 billion — consists of expenditure dependent on revenues.
This includes nearly €700 million in revenue from EU CO2 quota sales and €390 million of capped budget surplus, sums fixed in the budget but not paid out during the year.
In 2024, €2.14 billion of the state budget was unused.
Sõerd said surpluses are a problem and indicate errors in planning: "Of course, it also shows the complexity of planning European Union funds. Ministries take ambitious plans regarding EU funds but are unable to carry out and process procurements in time and apply for funds from the European Union budget. It is a matter of capacity."
He said most of the surplus is concentrated in the Ministry of the Interior, the Ministry of Economic Affairs and Communications, and also the Ministry of Education and Research.
A significant amount of funds also remained unused at the Ministry of Defense, where the timing of public procurements and deliveries plays a critical role.
The investment surplus, around €60 million, was the same as in 2024.
Sõerd was particularly critical about whether and how the unused money affects the goals set by the state. He reiterated that the current activity-based budgeting model does not fulfill its purpose if funds are not linked to results.
"I raised this issue and the Ministry of Finance wrote it down and promised to take it into account," he said.
The Finance Committee would like ministries to show how much the unused sums affected performance indicators.
"In previous years, this was not an issue at all, but now the Finance Committee has started asking about it. What is the point of having an activity-based budget at all if no one looks at how unused funds affect performance indicators?" Sõerd asked.
A clearer picture of which specific programs and activities were delayed the most will emerge on Thursday, when the ministry publishes more detailed data.
The Ministry of Finance's spring forecast is expected in mid-April.
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Editor: Helen Wright, Mari Peegel
