Prime Minister Kristen Michal presented next year's state budget to parliament on Tuesday. Michal said the budget had been drawn up responsibly and handled public money carefully.

"This budget is fair to Estonia's future. We are prepared to consider all reasonable proposals that can be accommodated, while keeping in mind and remembering that the budget balance cannot be changed in parliament," Michal said.

As the head of a minority government, the prime minister is in a difficult position this year. Although only a simple majority is needed to pass the state budget, doing so without opposition votes will be difficult.

"It will certainly be difficult to support this budget, but what we would definitely like to see in it is a reduction in VAT on food. That would help people cope financially. The other issue is that fuel prices are a concern for all of us and other countries are already addressing this by cutting excise duties," MP Lauri Laats (Center Party) said.

Isamaa believes that reductions in excise duties should have been considered when drawing up the budget, as well as a reduction in VAT on gas. Aivar Kokk said that just as a planned excise duty increase was postponed this year, the same should be done now.

"We have seen what has happened to energy prices. Our proposal today is to cut excise duties, but when I look at next year's state budget, there is actually a double increase in excise duties on May 1 next year," Kokk said.

There is a fairly broad consensus in the corridors of the Riigikogu that the coalition will secure the additional votes it needs from the Social Democrats who will be able to point to some measures, such as additional funding for special care services, as achievements of their own. The party insists, however, that it is not horse-trading.

"Special care services are a very good example. At least €30 million is needed there, while the entire reserve for the social sector available for negotiations with the opposition is €7.5 million. So what are we talking about? What kind of agreements does the governing coalition want to make here in parliament? I would say that this attitude and the way this budget has been drawn up clearly show that the government does not actually realize it is a minority government and that it might need to approach someone and talk," Social Democratic Party (SDE) Chair Lauri Läänemets said.

Läänemets said the Social Democrats would make their decision in November or December. EKRE leader Martin Helme said the budget was full of populist promises and that the party would vote against it regardless.

"We believe the best thing for Estonia would be for the budget not to be passed at all. In the first months of next year, before the Riigikogu elections, we would simply continue operating under this year's spending lines, thereby avoiding additional borrowing," Helme said.

In that case, drawing up the state budget would be left to the new government formed after the March elections.

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