The Tallinn Administrative Court ruled against Tallinn after the city contested the state's road maintenance allocations in court.
The city contested a government decision from February 2013 to allocate only 10 percent of fuel excise yields to local government roads, although they make up 40 percent of Estonia's road network, uudised.err.ee reported on Tuesday.
The court said Tallinn would have to pay back the 2.7 million euros it received from the state for road maintenance first, before expecting any final ruling. Even if the court ruled in favor of the city, it can not increase or force the state to increase funding from last year's budget due to restrictions in the State Budget Act.
"Without providing any reasons, the state has reserved more than 90 percent of the sum set out by the state budget for state roads," Klandorf said a year ago, when turning towards the court, calling the decision arbitrary and unjustified.
The Tallinn City Government has 30 days to appeal.