The government has approved the next year's state budget and the state budget strategy for the next four years and will send them to the Riigikogu The unicameral parliament of Estonia. for discussion.
Next year's state budget will focus on securing Estonia's security and the ability of people and companies to cope with the crises caused by Russia's large-scale war.
The revenue volume of the 2023 state budget is 16 billion euros, which is 16 percent less than in the 2022 state budget with the additional budget. The volume of expenses is 17 billion euros, which is 18 percent more than this year. Investments are made for 775 million euros, which is approximately 30 million euros more than this year.
Prime Minister Kallas noted that with the preparation of this budget, the government has taken important steps in restoring the credibility of state finances. Foreign Minister Urmas Reinsalu Urmas Reinsalu is an Estonian politician. highlighted that the approved budget invests in the sustainability of the Estonian nation state.
Europe is in the biggest security crisis of the last 30 years. In order to ensure Estonia's immediate security, in 2023 defense costs will exceed the 1 billion euro limit for the first time.
According to the state budget strategy, nearly 2.5 billion euros, or more than half of the total defense costs, will be invested in procurement in 2023-2026 in order to maximize the defense capability. Estonia will have a functioning medium-range air defense capability by 2025.
Central air defense is procured together with Latvia, which helps to protect the region as a whole even better. Additional critical capabilities that the country is investing in are anti-tank, indirect fire, coastal defense, situational awareness, and the infrastructure needed for an increased allied presence.
In addition to direct military capabilities, the country also contributes to the protection of the population. A total of 6 million euros will be allocated next year for the involvement of internal security volunteers, broad-based national defense and support for communities and non-governmental organizations. In addition, the state increases the amount of training at the internal defense academy to ensure the future of police officers and other internal security guards.
Salaries of socially important workers will increase.
In order to mitigate the impact of skyrocketing prices, the tax-free income will rise to 654 euros per month from January 1.