Speaking to "Aktuaalne kaamera," Isamaa chair Urmas Reinsalu decried the tax increases, warning, "2025 will be the year of 10 new state taxes, which will collectively take over a billion euros from Estonian citizens, alongside increased tax burdens on companies, while prices will also rise."

Center Party Riigikogu chief whip Lauri Laats echoed these concerns, saying: "We can clearly see the introduction of new taxes which will further drag down our economy. Based on statements from economists at various banks, we stand to face even greater impoverishment next year."

Martin Helme, leader of the Conservative People's Party of Estonia (EKRE) and a former finance minister, too was grim-faced, stating: "In 2025, real life for people will become harder than it has been so far. And that light at the end of the tunnel... Perhaps in 2026 or 2027, we might see some improvement, but it won't come quickly or be significantly better."

Tax hikes and cuts to essential services, along with frozen wages for key workers, reflect broader fiscal mismanagement that will worsen life for ordinary Estonians, opposition members said.

Leading coalition members downplayed these concerns.

Riigikogu Finance Committee chair and former finance minister Annely Akkermann (Reform) said that the economy is showing signs of growth and that life will start improving in the new year, though she conceded concerns remain about the frozen wages for public sector workers.

Marek Reinaas (Eesti 200) argued that people's ability to cope would not worsen in 2025, stating, "I believe incomes will increase."

Meanwhile, Priit Lomp (SDE) noted that pension reductions had been removed from the budget, a move he framed as a win for those reliant on state support.

Reform MP: State budget was 'too confusing'

Not all coalition party members, however, fully supported the budget in the form in which it passed on Wednesday.

Reform Party MP Aivar Sõerd, a member of the Riigikogu's Finance Committee, abstained from voting on it at all, calling the bill "too confusing" and lacking transparency.

Reiterating criticisms he has made in the past of the activity-based budgeting approach, he said: "The budget does not provide a clear overview of actual expenditures."

Sõerd stressed the importance of a "real budget with expenses classified according to their economic content," cautioning that the current approach obscures critical financial details and hinders effective oversight.

"It is hard to track where the money is actually going and to make informed decisions about the country's financial priorities," he added.

As for the budget itself, the government is projecting €17.7 billion in revenue and €18.2 billion in expenditure, with a new "security tax" expected to raise €113 million next year.

The tax, set to begin in 2025, will levy 2 percent on revenues, individual incomes and company profits, which the opposition also argues will add to the financial strain.

56 Riigikogu MPs voted in favor of the state budget bill, 29 against, at the 101-seat chamber.

--

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