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€2.1 billion earmarked for digital, green transition in budget strategy

Laptop computer  (photo isillustrative).
Laptop computer (photo isillustrative). Source: Thought Catalog/Unsplash

In total over €2.1 billion has been earmarked for digital transition and green transition in the budget strategy for 2022-2025 that is currently in the final stages of completion, Minister of Finance Keit Pentus-Rosimannus (Reform) has said.

The strategy sets aside €1.8 billion for the green transition and €340 million for digital transition. 

"The broader goal of this four-year plan of the state budget strategy definitely is to support important reforms. To support specifically the kinds of reforms which enable the Estonian economy to be successful in the future," the minister said at the government's press conference on Thursday. 

For instance, for the reform of the basic services of the digital state €44 million will be invested with the help of EU funding between 2021 and the end of the period covered by the strategy.

"In the course of that process, it will be possible to consolidate IT services, computer workstation, server hosting services," the minister said, adding that without said investment the state would spend an estimated €25 million more by 2030. 

In the period from 2023 to 2025, investments by the government sector will rise to a record level, with the government sector investing at least €2 billion every year. This however will entail a threat of overheating of the economy, according to the minister. 

"It is possible that the response to this has to be a short-term adjournment of investments made for Estonia's own tax money," she said. 

Also a consolidation or merger of Kredex and Enterprise Estonia (EAS) is in the cards to save on costs and improve the services of the state.

"In order for the service that the business sector gets to be better, clearer, and transparently managed," the minister added. 

Under current plans, the government will endorse the budget strategy and give its nod to the 2022 state budget next week


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Editor: Helen Wright

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