The government has approved and will submit the draft 2025 supplementary budget to the Riigikogu. The supplementary budget increases revenues by €26.6 million, expenditures by €46.5 million and investments by €32.5 million. Of these expenditures and investments, €44.2 million will be directed toward comprehensive national defense to enhance crisis resilience.

Under the supplementary budget, the Police and Border Guard Board will receive funding for weapons, protective equipment and communication devices. In the healthcare sector, support will go toward making Pärnu Hospital more crisis-resilient and ensuring secure supplies of oxygen and blood. The Ministry of Foreign Affairs will be better equipped to operate outside Estonia, while in the digital sphere, the reliability of the Luxembourg data embassy and the state cloud systems will be improved. The continuity of Estonian media outlets during crises will also be safeguarded.

The supplementary budget includes additional expenditures and investments to be covered primarily by foreign funds and extra revenue generated through state economic activity. These activities were not foreseen in the original 2025 state budget. For the same reason, the state's revenues are also increasing. In general, revenue-dependent expenditure projects will not be reassessed — only entirely new activities are being added through the supplementary budget.

Although the total volume of state financial transactions remains unchanged, approximately €25 million in financial transactions is included. Of that, €17.5 million will be allocated by the Ministry of Economic Affairs and Communications to the SmartCap investment fund and €7.2 million by the Ministry of Finance to restore a capital contribution made for the establishment of the Hexest explosives plant.

The supplementary budget also includes amendment proposals submitted by government ministries, which became necessary after the drafting of the 2025 state budget and do not alter the total budget volume.

On December 11 of last year, the Riigikogu passed the 2025 state budget, which sets revenues at €17.7 billion, expenditures at €18.2 billion, investments at €873 million and financial transactions at €679 million.

According to the State Budget Act, the government may initiate a supplementary budget no later than three months before the end of the fiscal year. The supplementary budget must be approved by the Riigikogu.

The need for a supplementary state budget was discussed on the April 21 edition of "Aktuaalne kaamera." Prime Minister Kristen Michal (Reform) said at the time that the need for a supplementary budget should become clear within a month. Whether the Riigikogu can process it in the spring or fall depends on how quickly it is prepared.

Michal also said that if only a small amount of additional defense spending can be found this year, it could be covered from the reserve. However, larger investments will require a supplementary budget.

Raoul Lättemäe from the Ministry of Finance said in the second half of April that neither this year's budget nor the recent economic forecast accounted for the possibility that Estonia's state budget deficit could reach 4.5 percent this year instead of the permitted 3 percent´.

The article was updated to add details on where supplementary budget funds will be spent.

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