The Ministry of Climate announced that, based on preliminary data, the surplus from its previous budget year amounted to approximately €835 million. Of this, around €536 million consists of CO2 funds — money whose inflow is difficult to predict accurately due to fluctuating unit prices.

Part of the surplus in CO2 funds is attributed to higher-than-expected revenue. Another portion comes from projects whose completion has been delayed. For the same reason, last year's external funding surplus was about €227 million.

"The main reason for the carryover is that projects have not launched as quickly as expected," said Kristi Klaas, acting secretary-general of the Ministry of Climate. "For example, conducting procurement processes or designing projects has taken longer. As a result, we are rolling these funds over into the following years."

Klaas emphasized the importance of fully utilizing European Union funds by the end of the period. Last year, the ministry left about €57 million in budgeted funds unused.

"The majority of state budget funds that we are carrying over to future years pertain to the construction of electrical grids to make them more resilient to weather conditions," Klaas explained. "Not all work could be completed within a single year, so it will continue over the coming years."

Former Finance Minister and Reform Party member Mart Võrklaev noted that the state budget surplus has decreased compared to the previous year.

"If we look at personnel and operating expenses in general, there has been a twofold decrease, with the surplus standing at €152 million. A year earlier, it was €156 million higher," Võrklaev said.

"The same applies to investments, where the surplus is €91 million. Before, it was €80 million more. I see this as a sign that we are on the right track," he added.

At the same time, Võrklaev pointed out that approximately €1.2 billion allocated for various operational support measures remained unused last year.

"These include expenses such as the Ministry of Education transferring funds to municipalities for implementing Estonian-language education. Or, for example, under the Ministry of Culture, funding is allocated for nationally significant cultural buildings. Since they are not currently being built, the money accumulates. The surpluses are larger in these areas and I believe better planning is needed," said Võrklaev.

He emphasized that the current information on last year's budget surplus is preliminary. Additionally, not all of these funds may be carried over into the new budget year.

"A thorough review is needed to determine which funds are tied to commitments. For example, decisions may have already been made to finance certain projects with external funds," he explained. However, he added that the transfer of operational and personnel expenses should be critically assessed.

"In the new year, the same budgetary resources are available again. We need to examine why these funds have accumulated, and if there is no strong justification, there is no point in carrying them over. I personally hope that they will not be transferred," Võrklaev said.

Võrklaev also urged ministries to reassess the carryover of funds last year.

"Nobody wants to give up money from their budget," he recalled of previous discussions. "And you could see from the media coverage afterward that the 'bad finance minister' came along and wanted to take money away from someone, and suddenly there were a thousand reasons why that couldn't be done. But experience shows that it can be done."

His fellow Reform Party member, Finance Minister Jürgen Ligi, stated in December that an earlier decision to eliminate the limit on carryover funds should be reconsidered. Kristi Klaas noted that the impact of such a cap varies across ministries.

"I do believe that all ministries should be able to plan their budgets effectively when it comes to operating costs," said Klaas.

"But when it comes to external funds and revenues from the emissions trading system, there is a significant level of uncertainty. Particularly regarding procurement and project planning. For example, if archaeological finds are discovered during the design phase of a road project, causing delays, this should not be seen as a negative," Klaas explained.

Võrklaev stated that he, too, had discussed imposing limits on carryover funds during his tenure.

"In the end, this motivates and directs ministries' secretaries general and deputy secretaries general to plan better and fully utilize the funds. The idea behind these investment grants is that the money should flow into the economy and be used for necessary projects at the right time. If we have planned measures and allocated funds, but they are not used, we should consider reallocating them to areas where demand is greater," Võrklaev concluded.

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