TALLINN. Sept 25 (Interfax) - Defense and security expenditures will become priorities of the Estonian state budget in 2025.
"The government will provide 5.6 billion euros for military defense of the people of Estonia and the country over the next four years. Another 1.6 billion will be added to that in line with the state budget strategy for the procurement of munitions for long-range weapon systems in the period until 2031," the Estonian government said in a statement on Wednesday.
Thus, annual defense expenditures will reach at least 3.3% of the GDP in the coming years and will reach 3.6% of the GDP in 2027. "We are now second in terms of defense expenditures in NATO after Poland, and we are ahead of the United States," the statement said.
Estonia will continue providing assistance to Ukraine in an amount of 0.25% of the GDP, which exceeds 100 million euros a year, it said.
An additional 219 million euros will be invested in national defense, of which 165 million euros will be used for strengthening internal security, in the next four years. The financed projects include the arrangement of the border with Russia, the fight against hybrid threats, and the strengthening of civil defense.
Estonia will introduce a temporary security tax for the period until 2028 to cover the rapidly growing defense expenditures.
The government approved a bill on the state budget for 2025 with revenues of 17.7 billion euros and expenditures of 18.2 billion euros on Wednesday. The budget deficit will stay at a level of 3% next year. Prime Minister Kristen Mihal will submit the draft state budget to the parliament for approval on Thursday.