Next year's draft budget passed its first reading in the Riigikogu on Monday which has a total balance of €16.79 billion, an increase of €2.6 billion on 2022.
In the budget, defense spending will rise to over €1 billion for the first time.
Teachers, police officers and rescue workers' salaries will also rise and more money has been allocated for the transition to Estonian language teaching.
The opposition Center Party voted to reject the draft.
The budget must now pass two more readings before it becomes law. Objections must be submitted before the end of the month.
Editor: Barbara Oja, Helen Wright