Investments in the draft budget, which has yet to pass and is separate from the national state budget currently being debated at the Riigikogu, are penciled-in at €165.6 million, a 17 percent increase on year.

Most investments are slated for road construction, education and the city's transport, Mayor Mihhail Kõlvart (Center) says, and a loan of €70 million is to be taken out towards this end.

Kõlvart said: "We will also be using up to €21.8 million taken from reserves built up in the past, in order to cover expenses, while the city's net debt burden is to remain at 35.5 percent. This figure is less than half the currently-permitted 80 percent debt burden maximum."

The loan is also contingent on city receipts over the next year, as well as its liquidity balance and the actual implementation of the investment items themselves.

The city has also factored-in a €1-million coronavirus costs fund.

Tallinn's revenues are budgeted to fall by one percent, as income tax, received subsidies, land tax and dividend revenues are all projected to fall slightly

Income tax revenue, the city's main source of income, has fallen by about half a percent, the city projects, as the result of the crisis, and is not expected to rise next year, the mayor said – in other words, income tax has come down due to people being laid off or working less.

Education

Education makes up 41.1 percent of the city's expenses at €277.3 million, and investments 29.2 percent (€48.4 million).

Three schools and four kindergartens are scheduled for renovation next year, two will receive an extension and one a sports hall.

Culture

Culture investments are budgeted at €16.8 million, with the largest projects being the development of Tallinn City Theater (Tallinna Linnateater), Tallinn Zoo and Tallinn Botanical Garden.

Sports investment is to rise to €5.6 million, centered on the renovation of Tallinn Sports Hall in the Juhkentali district and Kadriorg stadium.

Peterburi tee

Urban transport comprises 14.1 percent of the city's costs; €86 million is slated for regular transport costs, and investments will rise to €3.7 million.

In the field of public transport, 100 new biomethane-powered buses are to be procured, and school bus use is to be extended.

€8.3 million is set aside for implementing improvements for cyclists.

€35.8 million has been set aside in expenses for road and street maintenance, reconstruction and street lighting, and also sees a 30 percent rise in planned investments to €53.8 million.

Peterburi tee in the Lasnamäe district of the capital will also be renovated, according to the budget plans.

In the coming year, Tallinn will invest €17 million in maintenance, of which more than €10 million is planned for the arrangement, reconstruction and new construction of 15 parks and green areas, the city government said via a press release Thursday.

A total of €6 million is planned for the construction of Tondiraba park.

Playgrounds and park elements will be built, expanded and reconstructed at a cost of €2.6 million.

Support measures will be continued in the field of social welfare, as well as both temporary and permanent support measures being extended to those in need.

The plan is also to increase support for the elderly, i.e. the city's pension supplement, to €125, from next year. This costs the city a total of €11.4 million per year, the city says.

Expenditures in the field of social welfare will increase by 9 percent next year compared with this year, reaching a total of €57.8 million. The city is to make investments in this field to the tune of €9.2 million, which also includes the start of construction of the nursing home of the Iru care home.

For the first time, there are also funds planned in the city's budget for the project of inclusive budget. The total amount located for that is planned to be €800,000.

Fitch Ratings has confirmed Tallinn's Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDRs) at 'AA-' with Stable Outlook. The agency has also evaluated the outlook of the rating as stable also in the context of the expected recession due to the ongoing coronavirus crisis, the city government reports.

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