The net rise is unevenly applied across ministries, however: Expenditure will fall for four ministries in 2025: The culture, climate, foreign, and economic affairs ministries.

Expenditures will rise for the remaining seven ministries, most notably the justice ministry, which will see an 82 percent rise in spending on year to 2025.

The remaining constitutional institutions, namely the Riigikogu, the president's office, the government, the government office, the supreme court, the audit office and the justice chancellor's office, will nearly all see increases in spending too.

The Government Office's budget will see a very small cut (of 0.09 percent) in 2025.

The new four-year state budget strategy has put in place an austerity plan which aims to reduce public sector expenditures by €132.1 million in 2205, and with total savings to reach €295.4 million by 2028.

Budgetary cuts for 2025-2028, in terms of millions of euros: However in reality, the total sum of state expenditure and investments is to rise by €692.9 million, to €19.1 billion, next year.

In absolute figures, the Ministry of Social Affairs is to see the largest rise, getting an additional €265 million.

As expected, the primary factor with this ministry is related to pensions, as indexed increases have hiked pension costs by €301.5 million.

At the same time, the ministry has managed to make cuts in healthcare, childcare and family areas.

Government expenditures have also grown a lot: By nearly €220 million.

A major part of this rise comes from payments allocated to local governments. Meanwhile, reserves will also grow, by more than €50 million.

The Ministry of Justice is to see the largest rise in terms of percentage, mainly because it took on the digital role with the entry into office in the summer of the second Reform-Eesti 200-SDE coalition.

Its budget will rise by approximately 83 percent, or €188.5 million.

This growth is the result of the transfer of digital and IT-related affairs from the Ministry of Economic Affairs and Communications remit to the Ministry of Justice's umbrella.

Ministry of Defense expenses and investments are set to grow by €145.9 million; the fourth-largest rise in absolute terms.

In relative terms, the defense sector is to see a 9.3 percent rise.

The Ministry of Economic Affairs and Communications will experience the largest budget reduction in both relative and absolute terms. Due to the transfer of digital and IT functions to the Ministry of Justice, its budget will decrease by 12.1 percent or €174.3 million.

The Ministry of Climate will also face significant cuts, with its budget reduced by €108.7 million. This decline largely stems from reduced spending on the development and maintenance of rail and road transport, as well as climate change mitigation and adaptation efforts.

The Ministry of Culture's budget will see a modest 6.5 percent reduction, amounting to €23.3 million. These cuts will primarily affect libraries, but also museums and the performing arts.

The Ministry of Foreign Affairs will face a cut of €4.5 million, or 3.4 percent, mainly due to reductions in the promotion and protection of foreign economic

interests, as well as development cooperation and humanitarian aid

Across all institutions, meaning all 11 ministries, the government, government office, Riigikogu, president's office, justice chancellor's office and supreme court, 2025 expenditure in the state budget will rise by €692,900,000.

Under the state budget strategy issued at the same time, cuts will be €132,100,000 in 2025. For the following three years, the figures are: €224,510,000 (2026), 287,370,000 (2027) and 295,370,000 (2028).

--

Follow ERR News on Facebook and Twitter and never miss an update!