In a new analysis reviewing Estonia's budget deficits over the past decade, Oja found the largest structural deficits were accumulated under governments led by the Conservative People's Party of Estonia (EKRE) and the Center Party, accounting for 2.7 percent and 2.3 percent GDP, respectively.

This was followed by Isamaa and the Social Democratic Party (SDE) with 0.65 and 0.47 percent GDP.

Meanwhile, the current coalition's Reform Party and Eesti 200 have accounted for a respective 0.41 and 0.92 percent GDP.

"Our public debt was low, so increasing it seemed attractive," Oja said. "But what began as one-off increases has turned into long-term spending."

The biggest budget deficits emerged during the early years of the COVID-19 pandemic, when governments across Europe loosened fiscal policy.

Urmas Reinsalu, leader of Isamaa, said those decisions were broadly unavoidable and reflected a continent-wide response to the crisis.

"That was the path taken by nearly every country in Europe," said Isamaa chair Urmas Reinsalu.

Center MP Andrei Korobeinik acknowledged his party contributed significantly to the deficit, but argued the spending helped leave Estonia in stronger shape by 2021 than before the pandemic.

He added that governments should be bolder about investing in major infrastructure projects during economic downturns.

"But that kind of political courage is often lacking, and I think the Center Party was somewhat lacking in it as well," Korobeinik said.

EKRE chair Martin Helme disputed Oja's analysis, arguing much of the deficit attributed to his party resulted from supplementary budgets adopted by Reform and Center after they left office.

"I refuse to accept the claim that I somehow wrecked Estonia's public finances in a single year," Helme said.

Problems predate the pandemic

Oja said Estonia's fiscal challenges predate the pandemic, as the state's structural budget surpluses ended in 2015, and the country has run structural deficits every year since 2017.

Despite disagreeing over who has been responsible, Estonia's political parties broadly agree the budget must be brought back into balance over the next eight to ten years.

Helme called for deep spending cuts alongside broad tax reductions, including eliminating the VAT increase, income taxes, excise taxes and the annual motor vehicle tax.

Korobeinik instead advocated new revenue measures, including a windfall tax on banks, a digital tax targeting large technology companies, a progressive income tax and a smaller public sector.

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