The government approved its EUR 29.3-million supplementary budget on May 11 to fund “priority areas” and sent it to the Riigikogu for members’ approval.
The money will be used for “priority areas” such as the construction of the eastern border, increasing people’s AI skills, and financing a new explosives factory.
Earlier on May 11, Minister of Finance Jurgen Ligi (Reform) said some of the money was left over from funding from last year that had been reallocated.
“To continue building the border, make artificial intelligence investments and implement smaller changes, we are cutting expenditures elsewhere. Overall, the budget balance will improve by EUR 15 million,” he said.
EUR 17 million will be allocated for the construction of the eastern border to pay for contractual obligations.
EUR 11 million will be directed to the Eesti.ai initiative to increase people’s AI skills, improve public sector efficiency, improve healthcare services and strengthen the position of education and the Estonian language in the age of artificial intelligence.
The broader goal of the initiative is to grow Estonia’s economy and train at least 100,000 people to use artificial intelligence skillfully.
In addition, EUR 941,057 will be allocated to the Ministry of Culture, which will pass the money on to the Cultural Endowment to cover the shortfall following a mistake in the Gambling Act.
In addition to the revenues and expenditures reflected in the State Budget Act, the investments of Riigi Kinnisvara and state-owned explosives producer Hexest Materials will also be specified.
Defense Minister Hanno Pevkur made a proposal to bring forward the budget planned for 2027 and 2028 for the financing transaction of the Hexest Materials explosives factory into 2026.
The supplementary budget also takes into account the cancellation of the excise tax increases decided on March 12. (ERR)