State budget expenditure is characterised by the word ‘inertia’
18.12.2025
TALLINN, 18 December 2025 – Last year, agencies financed through the state budget left €2.15 billion unused, of which ca €1.7 billion was carried over or transferred to this year. According to ministries, there were no plans to use some of the money last year and part of the money was left over due to multi-annual and shifting projects. The carryover and transfer of money is not a problem in itself, but according to the National Audit Office, this should not happen simply due to inertia. Ministries and the Ministry of Finance, which coordinates fiscal policy, should make sure that the right to use is only extended for such unused state budget funds that are permitted by law and absolutely necessary. A bigger problem is that a large share of state budget expenditure slides from year to year without ministries and the Ministry of Finance assessing critically enough whether the expenditure is essential. The present approach to budgeting promotes a pattern of behaviour in ministries that is inefficient for the state as a whole.
