The Tallinn City Government will begin drafting the budget strategy for the next year at the end of summer.

All coalition parties in Tallinn have agreed that the main focus areas will be the transition to Estonian-language education and road maintenance.

Tallinn Mayor Jevgeni Ossinovski (SDE) stated that the city budget is in good shape and there is no need for significant cuts. However, Deputy Mayor Aleksei Jašin (Eesti 200) mentioned that the parties aim to save over €10 million next year.

The coalition parties noted that the duplication of services, as well as personnel costs in city institutions and subordinate agencies, need to be reviewed.

According to Deputy Mayor Pärtel-Peeter Pere (Reform), who is responsible for the sector, road maintenance could gradually be outsourced to the private sector, while the city would continue to oversee the process.

Both the mayor and the deputy mayors have certain priorities they would like to see reflected in next year's budget.

Deputy Mayor Kristjan Järvan (Isamaa) wishes to focus on sidewalks.

"Currently, it seems the discussion has shifted towards so-called seasonal transportation. Even on major streets – for example, along Pärnu maantee in Nõmme – sidewalks are actually missing," Järvan said.

Jašin mentioned that Eesti 200 wants to invest in educational infrastructure and the implementation of the cycling strategy.

The Social Democrats also consider it important to address the issue of kindergarten and school places and to develop the healthcare network.

"We hope to gain an understanding during the budget process of how we will move forward in cooperation with the state on hospital consolidation and the construction of the new Tallinn Hospital," Ossinovski explained.

Former Mayor Mihhail Kõlvart (Center) emphasized that the city should not neglect projects that have already been initiated. He cited the development of sports infrastructure, particularly the Olympic swimming pool, the reconstruction of Peterburi maantee and the extension of Kalamaja Basic School. "With such major projects, there is naturally an expectation that they will be fully completed," he said.

Tartu wants to keep spending at 2024 level

The goal for the City of Tartu is to keep expenses at the 2024 level, but planned tax changes by the state are expected to significantly reduce the city's budget. Additionally, Tartu's debt burden is set to increase.

The main expenditure areas in Tartu's budget for next year will be education, urban management and social welfare.

According to Deputy Mayor Meelis Leidt (Isamaa), education expenses will account for half of the city's budget.

Leidt also highlighted urban management and social welfare as key focus areas. "If we talk specifically about projects, these include the Tähtvere Kindergarten, the Sõpruse Bridge and the development of the main cycling network," he said.

Leidt noted that the increase in VAT and the so-called Robin Hood law (of bolstering smaller local governments' tax receipts at the expense of larger ones – ed.) will reduce next year's budget by nearly €5 million.

"For example, the VAT increase will add between one and two million euros to our costs. The planned Robin Hood reform of the local government funding model will take away up to three million euros. Our goal is to keep expenses at the 2024 level. We are already working on this. For instance, we have eliminated ten jobs and we are reviewing all possibilities across all sectors," Leidt explained.

Tartu's debt burden is also set to grow. "By the end of next year, the total debt burden will be just under €190 million," Leidt said.

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