The Riigikogu passed the supplementary budget for 2026
The Riigikogu (Parliament of Estonia) passed the Act on the State’s Supplementary Budget for 2026 (910 SE), initiated by the Government. It will reduce state revenues by EUR 24 million and increase expenditures by EUR 4.4 million. According to the Act, investments will decrease by EUR 1.5 million and the budget for financing transactions will increase by EUR 37.9 million.
The Act will direct EUR 10.98 million in expenses and investments to the projects of the Estonian artificial intelligence development programme Eesti.ai, which, among other things, aim to improve people’s AI skills and make the public sector more efficient. EUR 17 million will be allocated for the construction of the eastern border to pay for contractual obligations already undertaken. The investments of the State Real Estate Ltd and Hexest Materials Ltd will also be specified. The allocation to the Estonian Cultural Endowment will be increased by the amount of voluntary payments made to the state budget by gambling operators and the income tax paid on those payments.
The cancellation of the fuel excise duty increase, which started from 1 May, will lead to the largest decrease in revenue, amounting to EUR 36 million. To increase revenues, an additional 20 million in dividends will be taken from the net profit of the State Forest Management Centre.
The budget deficit will remain at 4.3 percent of GDP, i.e. at the same level as in the Ministry of Finance’s spring forecast. Next year’s budget deficit will decrease by 0.1 percent of GDP as a result of the proposals.
During the second reading, the Finance Committee included a provision to increase the single parent’s child allowance from EUR 80 to EUR 100 starting from 1 September 2026. The amendment will result in additional expenditure of approximately EUR 600,000 for the state budget in 2026, which will be covered from the budget for IT investments in the area of government of the Ministry of Social Affairs, with projects being postponed until next year. Starting from 2027, the additional expenditure will be taken into account during the preparation of the state budget strategy for 2027–2030.
In the 2026 state budget adopted by the Riigikogu last December, revenues totalled EUR 18.6 billion and expenditures EUR 19.5 billion, while investments totalled EUR 1.3 billion and financing transactions EUR 1.5 billion.
49 members of the Riigikogu voted in favour of passing the Act and 31 voted against.
Riigikogu Press Service
Gunnar Paal
+372 631 6351, +372 5190 2837
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