State budget bill 2025 passes first reading
The 2025 state budget bill passed its first Riigikogu vote on Wednesday, following debating which lasted several hours.
All three opposition parties. Isamaa, the Center Party and the Conservative People's Party of Estonia voted to reject the bill at its first reading, but were unable to secure a majority – the proposal found 20 votes in favor, with 56 against and no abstentions.
With that, the first reading was concluded.
Substantial amendments to most bills processed at the Riigikogu can be made between the second and third readings.
The deadline for submitting amendments to the 2025 state budget bill ahead of its third reading comes at 5:15 p.m. on Wednesday, October 30.
Total revenues are projected at €17.7 billion, an rise 5.2 percent ( €0.9 billion) on the 2024 state budget.
Total expenditures in the 2025 state budget are set at €18.2 billion, again an increase, of 3.5 percent (€0.6 billion) compared with 2024.
Investments have also risen, by 9.4 percent on the year, from €0.8 billion this year to €0.9 billion for 2025.
The tax burden in 2025 is projected to stand at 35.8 percent of GDP, 0.7 percent up on 2024's figure.
The budget deficit for 2025 is forecast to run at 3 percent of GDP, the maximum permitted under EU rules.
As a result of significant rises in security and social security spending, public debt is projected to rise by approximately €930 million, making it 24.3 percent of GDP
After the second reading, only cosmetic amendments may be made to the bill ahead of its third and final reading. The state budget generally passes at the end of the year preceding it, or in mid-December just before the Riigikogu goes on its winter recess.
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Editor: Andrew WhyteToimetaja: Urmet Kook, Merili Nael