Estonia targets 4% budget deficit in 2027 and delays investment projects

Estonia’s government has agreed to target a 4% of GDP budget deficit in 2027, down from 4.9% projected in the spring and 4.4% in the summer forecast.

Reaching the new target means spending around €250 million less next year than previously planned. The adjustment includes postponed investment rather than only cuts to current expenditure: the government has confirmed the slower Rail Baltica timetable, while some road projects will be delayed by six to nine months.

The budget is expected to be formally approved by the government before being submitted to parliament. The adjustment comes as Estonia combines higher defence expenditure with an effort to prevent the fiscal deficit from widening further.

Source: ERR, 24 September 2026.
https://www.err.ee/1610147077/valitsuse-jargmise-aasta-eelarve-on-nelja-protsendiga-miinuses