TALLINN, Estonia (May 15, 2025) — The Estonian government has approved a supplementary budget that allocates €44.2 million to strengthen national defence and crisis preparedness across key sectors, Prime Minister Kristen Michal’s office said Thursday.
In a press statement released on Thursday by the Estonian Prime Minister’s Office, the government said the additional funds are intended to improve internal security, healthcare resilience, foreign service capabilities, and ensure the operational continuity of Estonia’s digital and media systems.
“The additional funding in this year’s supplementary budget is aimed at increasing the preparedness of those areas that need to function not only for national defence, but in any major crisis,” said Prime Minister Kristen Michal. “This sum of €44 million will be used to boost internal security, increase the reliability of the medical system, improve the crisis response capacity of the foreign service, and secure the operational continuity of the digital and media sector.”
Under the proposed amendments to the 2025 state budget, total expenditures will rise by €46.5 million, revenues by €26.6 million, and investments by €32.5 million. The supplementary budget will be submitted to the Riigikogu, Estonia’s parliament, for approval.
Among the key allocations, the Police and Border Guard Board will receive additional funding for arms, defence equipment, and communications systems. In the health sector, the budget earmarks resources to strengthen crisis preparedness at Pärnu Hospital and improve the national security of oxygen and blood supplies.
The Ministry of Foreign Affairs is set to receive enhanced support to maintain operations beyond Estonia’s borders. Investments will also bolster the resilience of Estonia’s digital infrastructure, including the Luxembourg data embassy and national cloud services. Funds will be directed to ensure the continuity of domestic media outlets during emergencies.
Most of the supplementary funding is to be covered by external resources and increased revenues from the state’s economic activities, the government said. These revenues were not anticipated in the original 2025 budget.
The plan also includes €25 million in financing transactions, including €17.5 million for the SmartCap investment fund under the Ministry of Economic Affairs and Communications, and €7.2 million to the Ministry of Finance to recover Estonia’s share in the establishment of the Hexest explosives plant.
The supplementary budget includes technical adjustments across government ministries that became necessary after the original 2025 budget was finalized. The overall size of the state budget remains unchanged.
Editor: Gabriel Ani
