The 2025 budget was approved after 31 councilors voted in favor and four against.

Tartu's operating revenue for next year will be €248.3 million. The city's individual income tax revenue is planned to be €6.7 million more than this year, at €144.9 million. Subsidies from the state and other institutions are budgeted at €66.5 million, and sales of goods and services at €30.1 million. Land tax revenue is forecast to be €3.3 million with the city to receive around €2.5 million from local taxes – parking tax, road closure tax and advertising tax.

Operating expenditure will amount to €230.9 million, of which €128.7 million has been earmarked for education, according to the municipality.

To ensure the city's long-term financial viability, operating expenditure has been cut by €12.9 million. All sectors have contributed around 10 percent to the reduction in operating expenditure. 

Investment revenue is budgeted at €13.6 million, while expenditure is €43.1 million.

The city plans to borrow €29.2 million in the coming year. By the end of 2025, Tartu's loan commitments will amount to €181.4 million and its net debt burden to €153.9 million (62 percent), which is within the 75 percent limit.

The largest single investment will be the reconstruction of the Sõpruse Bridge, which is planned to cost €5.2 million in 2025, and a total of €18.5 million. €14.9 million will be invested in the construction, renovation and design of streets, as well as bridges, cycle paths and footpaths.

A further €5.1 million will be spent on the reconstruction of kindergartens and €1.9 million on improving the conditions in general education schools. The reconstruction of the Tähtvere kindergarten is set to be completed and work will start on the Meelespea kindergarten. In addition, the Miina Härma high School stadium will also be upgraded and necessary repairs carried out in some of the city's other schools.

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