More than half of budget investments to come from external instruments

The 2020 state budget bill includes investments, investment support and real estate investments in the total amount of €924 million. Of this sum, more than half will be coming from external instruments.

More exactly, €499 million, or 54 percent of planned investments will be made from external instruments, while €423 million, or 46 percent, from state revenues.

By investment category, the biggest investment group will be real estate, into which 36 percent of all investments will be directed. 33 percent of investment funding will go toward the development of roads and structures.

Other investments will account for 17 percent, defense-related investments 6 percent, machinery and equipment just over 3 and IT investments just under 3 percent of investments.

The biggest portion of investments to be made next year — 37 percent — will be via the Ministry of Economic Affairs and Communications. The Ministry of Defence ranks second, accounting for 11 percent of investments, while just over 9 percent of all of next year's planned state investments will be made via the Ministry of Finance.

The biggest expenditure line in next year's planned investments is the overall state highway renovation project, to which €122 million, or 13 percent of all investments included in next year's state budget, will be allocated. €61 million will be allocated to investments in the rural development plan, and another €59 million to defense investments, each of which accounts for just over 6 percent of the overall investment budget.

€41 million will go toward the Rail Baltica international railway, next year. In accordance with plans, this sum is to grow over a four year period, and from 2020-2023, a total of €344 million is to be invested in Rail Baltica.

Of highway improvements, the biggest planned investment will be into expanding the Kose-Mäo section of Tallinn-Tartu Highway into a four-lane (2+2) road, to which a total of €16 million will be allocated. Over the next two years, an additional €52 million is expected to be allocated to the same. Another €9 million is to be allocated to expanding the Aaspere-Haljala section of highway to four lanes, and €8.5 million to the construction of junctions on the Tallinn-Narva Highway; the latter is to receive another €5 million investment in 2021.

The second stage of the construction of the Tallinn Ring Road is to receive €6 million in funding next year, to which another €16 million will be added in 2021 and 2022. €6 million will also be allocated to Tallinn-Ikla Highway. €4.5 million from next year's budget has been earmarked for beginning the reconstruction of transit roads in Narva; another €4.5 million is to be earmarked for the same in 2021. In Tallinn, the state plans to invest €4 million in the traffic environment between Old City Harbour and the city center next year, which will need another €4 million in 2021.

The Estonian state plans to support the construction of Estonia's eastern border, which according to current plans should be completed by 2026 and cost a total of €190 million, with €15 million next year. A total of €49 million is planned to be invested into border construction over the next four years, with no additional funding at all planned for 2023.

In the education field, €46 million from the state budget is to go toward renovating secondary and upper secondary school buildings next year. Also planned is the continued construction of the Tallinn School of Fine Arts, which is slated to receive €15 million next year and €16 million in 2021.

Some major investments to be postponed

The funding of the construction of Pärnu Airport, however, has been postponed, with no money from the state budget to be allocated to it next year. €17 million in investments, however, have been planned for the regional airport in 2021.

Likewise postponed are plans to invest in the renovation of Tallinn Linnahall, which according to budget plans will need a total of €40 million in funding in 2021 and 2022.


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Editor: Aili Vahtla

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