The council approved a budget of nearly €305 million for 2024, which rose to €321 million with a supplementary budget.

According to the supplementary budget, the city's revenues increased by €7 million – the main part of this is due to the adjustment of state subsidies. But spending increased by more than €8 million, with the largest increases in education (€1.9 million) and social protection (€1.7 million).

The social sector is still missing at least €1.6 million and it is not known where the money will come from. Deputy Mayor for Finance and City Assets, Meelis Leidt (Isamaa) said: "We cannot prematurely announce concrete measures today, it is premature."

The situation in the field of education is no better. Raising teachers' salaries is likely to cost around €4 million under the terms of a new agreement which is currently being drawn up, Leidt said.

"Already today, a 1 percent increase in teachers' salaries means a salary increase of €300,000 for the City of Tartu, because, on the principle of equality, we are keeping the salaries of nursery school teachers with a master's degree and support service providers at the same level as in schools," he explained.

Therefore, the city must continue to look for savings. Leidt said the city has already terminated 10 positions, saving approximately €200,000, and sold real estate. City management Spending will continue to be reviewed.

Investments in street lighting have also saved money. "For example, investments will save €450,000 in street lighting already this year, as we switched to LED lighting," the deputy mayor noted.

At the same time, the money saved from electricity costs is spent on additional expenses. For example, additional costs related to snow removal will cost the city €413,000.

The investment budget will increase by an additional budget of €7 million, of which nearly 80 percent is related to work already underway. The city's loan balance is over €146 million. The net debt load last year was 46 percent, Leidt said.

"The legal limit is 80 percent. Interest rates are steadily high and, of course, discourage investment," he noted.

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