Isamaa chairman Urmas Reinsalu said that the 2027 state budget and state budget strategy prepared by Reform Party and Estonia 200 is a budget of continued chaos. According to him, the new government coming to power after March elections must make a negative supplementary budget and reduce governance costs.
Reinsalu said this is manipulation on paper. He finds that the country's financial situation is not improving but worsening. The documents contain cost postponements and unrealistic revenue expectations. Costs are deferred and confusion is left for elections.
The Reform Party boasts that debt has now been reduced. But in reality, debt burden is growing at an accelerating pace. For example, government sector debt growth will increase from 1.9% of GDP in 2026 to 4% by 2028. Interest costs will rise from €272 million in 2026 to €635 million by 2030.
Reinsalu calls several points written or unwritten into the state budget and budget strategy a bluff on paper. He cites as examples the inflation of hypothetical maximum prison rental income and unrealistic increases in corporate income tax revenue. Meanwhile, the €150 million cost of an explosive materials plant has been excluded from the budget strategy's balance calculations.
With the 2026 supplementary budget, the government wants to bring forward some costs from 2027 and also change inventory accounting rules. The aim is to show the 2027 budget in better financial condition.
At the same time, tax increase policies continue. Planned fuel and energy excise tax hikes await in the budget. Reinsalu is also bothered that the budget remains as opaque as before. Billions of euros remain unused from previous budgets and €250 million stands on Smartcap's account.
Reinsalu believes that in spring 2027, a new budget framework law should be implemented on cost basis, a negative supplementary budget made, and governance costs reduced. Real contributions should be made to improve the livelihoods of families with children and indirect tax burden should be lowered. A real boost for economic growth is also needed.