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Estonia Prioritizes National Defense, Postpones Rail Baltica Completion in 2027 Budget

Next year's state budget projects €20.2 billion in spending and €19.4 billion in revenue. The deficit is forecast at 4 percent of GDP.

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On Monday, the Government of Estonia presented its draft national budget, which allocates more than 5% of GDP in defence spending, exceeding NATO's objectives, emphasizing security as one of the priorities in a context of cutting public spending.

Estonia's defence spending in 2027 will continue to exceed 5% of GDP, and a total of €2.2 billion will be spent on national defence.

During today's presentation of next year's state budget, Prime Minister Kristen Michal acknowledged, among other things, that in parallel with the postponement of Rail Baltic, the deadlines for the completion of roads will also be pushed back.

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Eesti Rahvusringhääling broke the news in Tallinn, Estonia on Monday, September 28, 2026.
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