State Budget Act–Riigi Teataja

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State Budget Act

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Print content Hide 1 General Provisions § 1 Scope of regulation § 2 General government sector and central government sub-sector § 3 Area of government of ministry § 4 Fiscal Council § 4 1 Submission of data § 1 Scope of regulation § 2 General government sector and central government sub-sector § 3 Area of government of ministry § 4 Fiscal Council § 4 1 Submission of data 2 Budgetary Framework of State § 5 Budgetary…

State Budget Act 1

Passed 19.02.2014 RT I, 13.03.2014, 2 Entry into force 23.03.2014, in part 01.01.2015 and 01.01.2017 Amended by the following legal instruments (show) Passed Published Entry into force 19.02.2014 RT I, 13.03.2014, 2 23.03.2014, in part 01.01.2015 and 01.01.2017 19.06.2014 RT I, 29.06.2014, 109 01.07.2014 19.06.2014 RT I, 29.06.2014, 109 01.07.2014, the titles of ministers replaced on the basis of subsection 4 of § 1…

§ 1. Scope of regulation

(1) This Act provides the conditions and procedure for the drafting and passage of the state budget and the use of the funds in the state budget. In addition, the bases for drafting the state budget are provided, pursuant to which the fiscal policy opportunities arising from the state financial forecasts and strategic development documents are followed when drafting the state budget. (2) To meet the requirements est…

§ 2. General government sector and central government sub-sector

(1) The general government sector shall include the entities specified in paragraph 2.112 of Annex A to Regulation (EU) No 549/2013 of the European Parliament and of the Council on the European system of national and regional accounts in the European Union (OJ L 174, 26.06.2013, p. 1–727). (2) The general government sector is divided into the central government, local government and social security funds sub-sector.…

§ 3. Area of government of ministry

(1) For the purposes of this Act, the area of government of the ministry means the ministry together with the state authorities in its area of government. (2) The provisions of this Act concerning a ministry, the area of government of a ministry and state agencies apply to constitutional institutions and authorities in their area of administration, unless otherwise provided by this Act. A legal instrument which, pur…

§ 4. Fiscal Council

(1) The Fiscal Council is the advisory board formed pursuant to § 4 2 of the Eesti Pank Act, which assesses the state macroeconomic forecasts and the state financial forecasts and monitors the compliance with the budgetary rules specified in Chapter 2 of this Act pursuant to the requirements established in this Act and the European Union law. (2) Where the Government of the Republic disregards an opinion of the Fisc…

§ 4 1 . Submission of data

The Ministry of Finance has the right to receive necessary data from the ministries and other government sector entities for the preparation of the state budget strategy (hereinafter budget strategy ), draft state budget, financial forecasts, and the state medium-term fiscal-structural plan (hereinafter fiscal-structural plan ) and its annual progress report, and for monitoring the use and implementation of the stat…

§ 5. Budgetary position, net expenditure and fiscal policy objective [RT I, 19.12.2025, 1 – entry into force 29.12.2025]

(1) The budget position of the general government sector is the difference between the total revenue and total expenditure of the general government sector. (2) The structural budget position of the general government sector is the cyclically adjusted budget position of the general government sector, which does not take into account one-off or temporary transactions. (2 1 ) The net expenditure of the general governm…

§ 5 1 . Fiscal policy limits

(1) The state budget and budget strategy are drafted in such a way that the budget position and debt of the general government sector are, taking into account the macroeconomic forecast and financial forecast specified in § 15 of this Act, in accordance with the requirements of Additional Protocol No. 12 to the Treaty on the Functioning of the European Union and Regulation (EU) 2024/1263 of the European Parliament a…

§ 6. Budget position rules for central government legal persons [RT I, 19.12.2025, 1 – entry into force 29.12.2025]

(1) [Repealed – RT I, 19.12.2025, 1 – entry into force 29.12.2025] (1 1 ) [Repealed – RT I, 19.12.2025, 1 – entry into force 29.12.2025] (1 2 ) [Repealed – RT I, 22.12.2023, 2 – entry into force 29.12.2025 – entry into force amended [RT I, 19.12.2025, 1]] (1 3 ) [Repealed – RT I, 22.12.2023, 2 – entry into force 01.01.2024] (2) It shall be ensured by law or on the basis of law that the budget of a central government…

§ 7. Adjustment mechanism

(1) Where, according to the macroeconomic forecast and financial forecast prepared on the basis of § 15 of this Act, the budget position of the general government sector exceeds the limits provided in § 5 1 , then within one month of the publication of the forecast, the minister in charge of the policy sector submits to the Government of the Republic for information an analysis of the state of public finances and, w…

§ 9. Exemption clause

(1) Where a general or country-specific escape clause of the European Union applies pursuant to Regulation (EU) 2024/1263 of the European Parliament and of the Council, the implementation of the measures provided in subsections 2 and 21 of § 7 of this Act may be postponed, subject to the conditions of the relevant decision of the Council of the European Union and the provisions of this section. The escape clause may…

§ 10. Net debt rule for central government legal person

(1) It shall be ensured by law or on the basis of law that the difference between the debt obligations and the total amount of the liquid assets of a central government legal person planned as at the end of a budgetary year (hereinafter net debt ) may form up to 40 per cent of the operating revenue planned for the same budgetary year throughout the period included in the financial plan submitted on the basis of § 12…

§ 11. Exceptions from budget position and net debt rules

(1) The state budget may, in justified cases, impose additional restrictions on the operating result or net debt of a central government legal person specified in §§ 6 and 10 of this Act. The obligation of a central government legal person to adhere to such restrictions shall be ensured by law or on the basis of law. (2) The imposition of the additional restrictions specified in subsection 1 of this section shall be…

§ 12. Financial plan of central government legal person

(1) It must be ensured by law or on the basis of law that a central government legal person annually submits a financial plan concerning its current budgetary year, the preceding budgetary year and the next four budgetary years. The data are submitted with the intermediation of the ministry exercising the rights of a founder or the ministry in the corresponding area to the Ministry of Finance by 15 July. If decision…

§ 13. Receipt of additional information from central government legal person

(1) The minister in charge of the policy sector and the minister exercising the rights of a founder or the minister in the corresponding field shall be entitled, for the assessment of the compliance with the budgetary rules provided for in this Chapter, to receive from a central government legal person the relevant information. (2) The minister exercising the rights of a founder or the minister in the corresponding…

§ 14. Monitoring of compliance with budgetary rules

(1) The Fiscal Council gives its opinion on: 1) the fiscal policy objectives of the general government sector presented in the budget strategy before the budget strategy is approved; 2) the compliance of the expenditure growth reported in the progress report on the fiscal-structural plan with the net expenditure trajectory, and on the reasons for possible deviations, at the request of the Minister of Finance, before…

§ 14 1 . Assessment of functioning of budgetary framework of state

The Fiscal Council assesses the functioning of the budgetary framework of the state described in this Chapter at least once every four years or at the proposal of the Finance Committee of the Riigikogu. [RT I, 19.12.2025, 1 – entry into force 29.12.2025]

§ 15. Macroeconomic forecast and financial forecast

(1) The objective of the macroeconomic forecast is to describe the state economic environment together with the likely developments and to inform the public thereof. (2) The macroeconomic forecast provides the basis for the financial forecast which describes the revenue, expenditure and investments of the general government sector together with the likely changes. The financial forecast provides the basis for the fi…

§ 16. Requirements for macroeconomic forecast and financial forecast

(1) The macroeconomic forecast and the financial forecast shall be prepared annually with regard to the current budgetary year and the following four years, relying on the latest known data series. The data used as the external environment prerequisites for the macroeconomic forecast and the financial forecast shall not be older than two months by the intended publication date of the forecast. (2) The alternative as…

§ 17. Preparation of macroeconomic forecast and financial forecast

(1) The Ministry of Finance shall prepare the macroeconomic forecast and the financial forecast pursuant to the requirements provided for in this Act and the European Union law. (2) The officials or employees preparing the macroeconomic forecast and the financial forecast shall be independent in the preparation of the forecast and choosing the methods of preparation.

§ 18. Evaluation and publication of macroeconomic forecast and financial forecast

(1) The Fiscal Council shall provide an opinion regarding the macroeconomic forecast and the financial forecast within two weeks as of their publication. The Ministry of Finance shall justify disregarding the opinion of the Fiscal Council publicly within two weeks as of the publication of the opinion of the Fiscal Council. (2) The Ministry of Finance shall publish the macroeconomic forecast and the financial forecas…

§ 18 1 . Ex post evaluation of macroeconomic forecast and financial forecast

(1) The Fiscal Council regularly, but at least once every three years, evaluates the accuracy of macroeconomic and financial forecasts based on objective criteria in order to identify possible systemic deviations. The Fiscal Council publishes its evaluation and the Ministry of Finance takes the results into account when preparing future macroeconomic forecasts and financial forecasts. (2) The Ministry of Finance pre…

§ 19. Strategic development documents

(1) The strategic development documents are the long-term development strategy of the state, general principles of policy, sectoral development plan and programme. [RT I, 07.12.2021, 1 – entry into force 15.12.2021] (1 1 ) The long-term development strategy of the state is a development document which determines the comprehensive vision for policy areas, national strategic goals and significant changes required for…

§ 20. Preparation and implementation of strategic development documents and amendments thereto

(1) The long-term development strategy of the state and the general principles of policy are adopted by the Riigikogu either on its initiative or on the proposal of the Government of the Republic. [RT I, 07.12.2021, 1 – entry into force 15.12.2021] (2) The sectoral development plan shall be prepared at least for the budget strategy period. The sectoral development plan shall be approved by the Government of the Repu…

§ 20 1 . Fiscal-structural plan

(1) The medium-term budgetary objectives in accordance with sections 5 and 5 1 of this Act are confirmed in the fiscal-structural plan submitted by the Government of the Republic to the Council of the European Union and the European Commission. The plan is published on the website of the Ministry of Finance. (2) The fiscal-structural plan is prepared at least once every four years, in accordance with the requirement…

§ 20 2 . Progress report on fiscal-structural plan

The implementation of the fiscal-structural plan is described in a progress report prepared annually in accordance with the requirements of Regulation (EU) 2024/1263 of the European Parliament and of the Council. The progress report is published on the website of the Ministry of Finance. [RT I, 19.12.2025, 1 – entry into force 29.12.2025]

§ 20 3 . Fiscal risk report

As part of the budgetary framework of the state, the Ministry of Finance regularly compiles a fiscal risk report to assess risks that may threaten the sustainability of public finances and inclusive and sustainable growth in the medium and long term. When assessing risks, estimates of the macro-fiscal risks associated with climate change and their distributional effects are taken into account where possible, and the…

§ 21. Content of budget strategy

[Repealed – RT I, 07.07.2017, 4 – entry into force 01.01.2020]

§ 22. Preparation of budget strategy

[Repealed – RT I, 07.07.2017, 4 – entry into force 01.01.2020]

§ 24. Approval of budget strategy

[Repealed – RT I, 07.07.2017, 4 – entry into force 01.01.2020]

§ 25. Publication of budget strategy and stability programme

[Repealed – RT I, 07.07.2017, 4 – entry into force 01.01.2020]

§ 25 1 . Content of budget strategy

(1) The budget strategy determines the main directions of the state fiscal policy and records the general objectives of the Government of the Republic, which are intended to be implemented during the budget strategy period, and the funds planned for the implementation (hereinafter financing scheme ). The budget strategy is prepared each year with regard to at least the next year and the following three years (herein…

§ 26. Content of state budget

(1) The state budget is the annual financial plan of the state which records the funds (hereinafter funds ) which the state plans to accumulate, receive as support, intermediate and use during the budgetary year. [RT I, 07.07.2017, 4 – entry into force 01.01.2020] (2) In the state budget, the funds shall be classified on the basis of the budget classification administratively between the areas of government of the C…

§ 27. Budgetary year

(1) The state budget shall be drafted with regard to one budgetary year. (2) The budgetary year shall begin on 1 January and end on 31 December.

§ 28. Structure of state budget

(1) The following shall be presented in the state budget: 1) the consolidated budget of the state budget funds; 2) [Repealed – RT I, 07.07.2017, 4 – entry into force 01.01.2020] 3) the classification of the state budget funds. (2) The State Budget Act shall stipulate the provisions which are to be submitted pursuant to an obligation arising from the legislation or which are related to the regulation or conditions of…

§ 29. Budget classification

(1) The budget classification comprises the detailed breakdown of the funds and the accounting policies and concepts used in budgeting, financial management and strategic planning. [RT I, 07.07.2017, 4 – entry into force 17.07.2017] (2) [Repealed – RT I, 07.07.2017, 4 – entry into force 01.01.2020] (3) [Repealed – RT I, 07.07.2017, 4 – entry into force 01.01.2020] (4) The budget classification shall be established b…

§ 30. Compulsory breakdown of state budget

[Repealed – RT I, 07.07.2017, 4 – entry into force 01.01.2020]

§ 31. Additional breakdown of expenditure, investments and financing transactions

(1) The Government of the Republic shall break down the investments in immovables of the area of government of the ministry specified in the state budget by properties. The Government of the Republic may break down other investments, expenditure and financing transactions of the area of government of the ministry specified in the state budget in compliance with the budget classification. (2) The minister breaks down…

§ 32. Funds with and without limits and transferable tax

[RT I, 07.07.2017, 4 – entry into force 17.07.2017] (1) The state budget funds are divided into the funds with and without limits. No restrictions shall be imposed by the state budget on the amount of liabilities assumed on account of the funds without limits. [RT I, 07.07.2017, 4 – entry into force 17.07.2017] (2) The funds without limits include: 1) the expenditure, investment and financing transaction, the possib…

§ 33. Transfer of state budget funds

[Repealed – RT I, 07.07.2017, 4 – entry into force 01.01.2020]

§ 33 1 . Preparation of budget strategy

(1) The budget strategy shall be prepared by the Ministry of Finance. [RT I, 07.07.2017, 4 – entry into force 01.01.2020] (2) The information concerning the coming years provided in the budget strategy for the previous period shall be amended upon the approval of the new budget strategy only in case the general objective of a performance area, the action programme of the Government of the Republic, the main directio…

§ 34. Bases for compilation of draft state budget

The draft state budget is compiled on the basis of the budget strategy and the latest financial forecast. [RT I, 07.12.2021, 1 – entry into force 15.12.2021]

§ 34 1 . Budget strategy and approval of state budget

(1) The Government of the Republic approves the budget strategy and the draft state budget considering that these must be submitted to the Riigikogu not later than three months before the beginning of a budgetary year. [RT I, 07.12.2021, 1 – entry into force 15.12.2021] (2) [Repealed – RT I, 07.12.2021, 1 – entry into force 15.12.2021] (3) [Repealed – RT I, 07.12.2021, 1 – entry into force 15.12.2021] (4) [Repealed…

§ 34 2 . Spending review

(1) For the productive and efficient use of public funds and enhancing the flexibility of the functioning of the state, the Government of the Republic may prepare the spending review in planning the state budget funds. (2) The spending review shall make specific proposals for more influential, efficient and economical use of the state budget funds. (3) The conditions and procedure for preparation of the spending rev…

§ 35. Budget project for area of government of ministry

(1) [Repealed – RT I, 07.07.2017, 4 – entry into force 01.01.2020] (2) [Repealed – RT I, 07.07.2017, 4 – entry into force 01.01.2020] (3) The opinion of the Council for Administration of Courts regarding the conformity of the funds planned for the county courts, administrative courts and circuit courts to the principles of the formation of annual budgets of courts shall be enclosed to the budget project of the Minis…

§ 36. Budget negotiations

[Repealed – RT I, 07.07.2017, 4 – entry into force 01.01.2020]

§ 37. Legislative proceeding of draft state budget by Government of the Republic

(1) [Repealed – RT I, 07.07.2017, 4 – entry into force 01.01.2020] (2) [Repealed – RT I, 07.07.2017, 4 – entry into force 01.01.2020] (3) In case of any changes in the amount of the funds prescribed in the draft state budget for the county courts, administrative courts or circuit courts, the Government of the Republic shall submit the made changes together with the opinion of the Council for Administration of Courts…

§ 37 1 . Specifications for preparation of budget strategy and draft state budget

[Repealed – RT I, 07.12.2021, 1 – entry into force 15.12.2021]

§ 38. Submission of draft state budget to Riigikogu

(1) The Government of the Republic shall submit the draft state budget together with the explanatory memorandum to the Riigikogu not later than three months before the beginning of the budgetary year. (2) The draft state budget submitted to the Riigikogu shall conform to the published legislation and the draft legislation initiated by the Government of the Republic in the Riigikogu prior to the submission of the dra…

§ 39. Legislative proceeding of draft state budget in Riigikogu

The Riigikogu shall conduct the legislative proceeding of the draft state budget on the basis of the Riigikogu Internal Rules and Rules of Procedure Act with the specifications arising from this Act.

§ 40. Motions to amend draft state budget

(1) The initiator of a motion for amending the draft state budget, which would have the effect of decreasing estimated revenue or increasing or reallocating expenditure, investment or financing transaction, shall append financial calculations specifying the necessary sources for covering expenditure. (2) A motion to amend the draft state budget shall not cause a structural state budget deficit, an increase in the st…

§ 41. Passage of state budget

The Riigikogu shall pass a state budget as an Act.

§ 42. Incurring expenditure if state budget is not passed by beginning of budgetary year

(1) If the Riigikogu has failed to pass the state budget by the beginning of the budgetary year, the area of government of a ministry, prior to the passage of the state budget, can make expenditure, investments and financing transactions each month of the new year within up to one-twelfth of the corresponding expenditure, investment or financing transaction in the state budget for the previous year on the condition…

§ 43. Amendment of state budget

(1) In order to amend the state budget without amending the total amount of funds, the Government of the Republic may initiate a draft State Budget Amendment Act not later than two months before the end of the budgetary year. (2) The Ministry of Finance shall compile a draft State Budget Amendment Act together with the explanatory memorandum. (3) The submission, deliberation and passage of a draft State Budget Amend…

§ 44. Supplementary budget

(1) In order to amend the state budget amending the total amount of funds, the Government of the Republic may initiate a draft supplementary budget not later than three months before the end of the budgetary year. (2) The Ministry of Finance shall compile a draft supplementary budget together with the explanatory memorandum. (3) The submission, deliberation and passage of a draft supplementary budget are conducted p…

§ 45. Specifications for initiation of amendment of state budget and supplementary budget

(1) After the approval by the Riigikogu of a resolution on increasing the defence readiness or declaration of a state of emergency or a state of war, and for the performance of the obligations provided for in a collective self-defence agreement, the Government of the Republic may submit to the Riigikogu a draft State Budget Amendment Act or a draft supplementary budget and decide, if necessary, on the implementation…

§ 46. Connection between state budget and local government budgets

(1) The state budget grants support to local governments: 1) from the equalisation fund; 2) from the support fund; 3) for supporting specific activities or investment case-by-case. (2) Before preparing the budget strategy and draft state budget, the representatives of local authorities and of the national association of local authorities and the representatives of the Government of the Republic hold negotiations wit…

§ 47. Equalisation fund

(1) The size of the equalisation fund and principles of distribution thereof are determined by the state budget or by another Act. [RT I, 19.12.2025, 1 – entry into force 29.12.2025] (2) The objective of the equalisation fund is, without determining the conditions of using the funds, to harmonise the opportunities for performance of the functions of the local governments. The distribution of the equalisation fund sh…

§ 48. Support fund

(1) The size of the support fund and the types of support included therein shall be determined in the state budget. (2) The support fund means the support granted to local authorities for the use pursuant to the purposes and conditions provided by law, which is distributed only based on the figures. [RT I, 19.12.2025, 1 – entry into force 29.12.2025] (3) The figures providing the basis for the distribution of the su…

§ 49. Payments from equalisation fund and support fund

(1) The rules for the execution of payments established on the basis of subsection 4 of § 64 of this Act shall provide the conditions and procedure for the payment of support and making the advance payments of support assigned to a local government on the basis of subsection 3 of § 47 and subsection 6 of § 48 of this Act. (2) Unless the Government of the Republic has established the distribution specified in subsect…

§ 50. Case-by-case support

(1) A ministry grants targeted case-by-case support to a local authority and to a unit under its dominant influence for investments or operating expenses from the funds prescribed for the area of government of the ministry by the state budget. [RT I, 19.12.2025, 1 – entry into force 29.12.2025] (2) [Repealed – RT I, 19.12.2025, 1 – entry into force 29.12.2025] (2 1 ) The minister may establish, by a regulation, the…

§ 51. Covering of expenses of state function

(1) The basis for covering the expenses of a state function imposed on a local authority by law (hereinafter state function ) shall be the average calculated expenditure or actual expenditure. (2) If the expenses of a state function are covered on the basis of the figures provided by law, the principles of calculation of average expenditure or compensation for actual expenditure shall be determined by a regulation s…

§ 52. Use of support fund and case-by-case support

Unless the provider of support has prescribed repayment of the unused funds of the support fund or case-by-case support to the state, the local authority may use these in the next budgetary year for the same purpose. [RT I, 19.12.2025, 1 – entry into force 29.12.2025]

§ 53. Prerequisites for use of state budget funds

(1) The area of government of a ministry shall have the right to use the state budget funds for the intended purpose and only in case the corresponding funds are prescribed in the budget and unless otherwise provided by this Act. (2) The area of government of a ministry shall have the right to use the state budget funds only within the same budgetary year, unless otherwise provided by this Act or the state budget. […

§ 53 1 . Granting of domestic project-based support [RT I, 19.12.2025, 1 – entry into force 29.12.2025]

(1) The conditions and procedure for granting domestic project-based support on account the funds of the area of government of a ministry, including the organisation of the call for applications, the use of support and reporting, and the recovery of funds granted as support or the balance thereof, unless such conditions and procedure derive from another legal instrument, are established by a regulation of the minist…

§ 53 2 . Granting of domestic operating support

(1) The minister has the right to grant domestic operating support on account the funds of the area of government in the cases provided by law or in the cases provided in this section for activities included in the development documents of the area. A constitutional institution may grant domestic operational support if it is related to its tasks and lines of action. (2) A central government legal person may be a rec…

§ 53 3 . Granting of domestic social support

(1) Domestic social support, the granting whereof is not provided by any other Act or legal instrument, may be granted to a natural person under this Act on account the funds of the area of government of a ministry if it is related to the activities of the area of government contained in the development documents of the area and funds have been prescribed for this purpose in the budget of the area of government. (2)…

§ 54. Use of foreign support and foreign support co-financing funds prior to receipt thereof

(1) A state authority may use the foreign support and the foreign support co-financing funds, upon the consent of the Ministry of Finance, prior to the receipt thereof. (2) If a state authority has made payments on account of the funds specified in subsection 1 of this section in a larger amount than the foreign support or the foreign support co-financing funds will be received, the state authorities or its superior…

§ 55. Use of budget for domestic project-based support, domestic operating support, and foreign support co-financing

(1) The provider of domestic project-based support and operating support, as well as of the co-financing funds provided in the state budget, must ensure that the recipient of the support or co-financing funds undertakes to use the support or funds received only for the purpose and under the conditions determined by the provider of the support or funds. (2) Unlawful and misused state aid is recovered on the basis and…

§ 55 1 . Recovery of domestic project-based support

(1) The provider of domestic project-based support may partially or fully revoke the decision to grant support and, depending on the severity of the violation, recover it, either partially or fully, if it becomes apparent that the recipient of the support: 1) has knowingly submitted false information when applying for or using the support, has fulfilled the conditions for receiving or using the support ostensibly, a…

§ 55 2 . Processing of personal data upon processing of applications for support

(1) When processing an application for support on the basis of §§ 53 1 –53 3 of this Act, the following personal data are processed: 1) the general data and current account of the applicant for the support; 2) data on the health, ethnic origin, education, and work experience of the natural person applying for the support, where such data are necessary under the conditions for granting the support in order to determi…

§ 56. Amendments to use of state budget funds

(1) The distribution of the funds determined by the state budget may be amended only by an amendment of the state budget or a supplementary budget, unless otherwise deriving from this Act or the state budget. [RT I, 19.12.2025, 1 – entry into force 29.12.2025] (2) The Government of the Republic shall have the right to amend the breakdown of the following funds determined in the state budget: [RT I, 07.07.2017, 4 – e…

§ 57. Use of funds related to write-off of principal amount of study loans

[Repealed – RT I, 07.07.2017, 4 – entry into force 17.07.2017]

§ 58. Use of funds in reserve fund of Government of the Republic

(1) The funds in the reserve fund of the Government of the Republic may be used for unforeseeable expenditures and investments which cannot be planned in the legislative proceeding of the draft state budget. The state budget provides for a reserve fund of the Government of the Republic, constituting up to three percent of the total amount of state budget expenditures and investments. [RT I, 19.12.2025, 1 – entry int…

§ 59. Organisation of receipt of revenue

The revenue shall be received in the liquid financial assets of the state, unless otherwise provided by law.

§ 59 1 . Transfer of state budget funds

(1) The transfer of the state budget funds is the extension of the term of using the state budget funds by one budgetary year (hereinafter transfer ). (2) The transferred funds of the state budget may be used for the purpose determined by the state budget. The distribution of the state budget funds to be transferred between the performance areas and programme activities and the main breakdown of the administrative a…

§ 60. Assumption of obligations

(1) A state authority shall have the right to assume obligations only in case if the funds have been designated thereto for the performance of the obligation in the state budget or in a budget approved on the basis thereof. (2) Unless otherwise provided by this Act, a state authority shall be prohibited to: 1) assume debt obligations for the state; 2) grant state guarantee or other collateral; 3) grant a loan; 4) ma…

§ 61. Loan granted by state and state guarantee

(1) The state may grant a loan or state guarantee: 1) for the performance of public duties; 2) to a financial institution or to secure the obligations of a financial institution in order to resolve or prevent a financial crisis that may cause difficulties related to liquidity or solvency, or significant disruptions in the payment and settlement systems; 3) to the persons specified in subsection 1 of § 67 of this Act…

§ 62. Resolution on granting state guarantee and loan

(1) A resolution on granting a state guarantee shall contain at least the following information: 1) the recipient of the state guarantee or the guaranteed person; 2) the intended purpose or objective of the state guarantee; 3) the amount and currency of the state guarantee; 4) the term of the state guarantee; 5) the state guarantee premium. (2) A resolution on granting a loan shall contain at least the following inf…

§ 63. Grant of repayable support to profit-making state agency

(1) The Ministry of Finance shall have the right, on account of the maximum permitted balance of loans and state guarantees granted by the Government of the Republic and specified in subsection 5 of § 61 of this Act, to grant repayable support to a profit-making state agency. (2) The amount of the repayable support specified in subsection 1 of this section and the specific conditions and procedure for the payment an…

§ 64. Execution of payments of state authorities

(1) The Ministry of Finance shall execute the payments and settlements of the state authorities and intermediate in the payment services thereto (hereinafter execution of payments ). (2) A state authority shall have no current or payment account with a credit or financial institution, excluding if the Ministry of Finance has granted an authorisation therefor. When granting an authorisation, the Ministry of Finance m…

§ 65. Management of state cash flow

(1) The management of the state cash flow shall mean the conclusion of transactions with the liquid financial assets of the state, the assumption of debt obligations for the state and the management of financial risks related to the specified activities with an objective to ensure the availability of sufficient funds for making payments. [RT I, 07.07.2017, 4 – entry into force 17.07.2017] (2) The liquid financial as…

§ 66. Principles of management of state cash flow

(1) The amount of the liquid financial assets of the state and the opportunity to assume debt obligations shall be such as to ensure the making of the payments of the state and other persons specified in § 67 of this Act. In the assessment of the sufficiency of the amount of the liquid financial assets of the state and the opportunity to assume debt obligations, the probability of the realisation of the contingent l…

§ 67. Keeping and investment money of other persons

(1) The Ministry of Finance shall have the right, on the basis of law or contract, to keep and invest the money of legal persons in public law, legal persons in private law founded by the state or with state participation and legal persons in private law carrying out administrative duties of the state, to execute the payments and settlements of the persons and intermediate in the payment services thereto. (2) The Mi…

§ 68. Performance of contingent liabilities

(1) The minister in charge of the policy sector shall organise the performance of the financial obligations arising from the state guarantees granted on the basis of this Act on account of the liquid financial assets of the state. (2) The minister in charge of the policy sector shall organise the due payment of the holding contributed at the request of the international financial institutions in which the state is a…

§ 69. Debt obligations of state

(1) The debt obligations of the state for the purposes of this Act shall mean the loans, overdrafts, short-term loans on securities taken, bonds issued and repurchase agreements of securities entered into for the management of the state cash flow. [RT I, 07.07.2017, 4 – entry into force 17.07.2017] (2) The maximum permitted balance of the debt obligations of the state shall be determined by the state budget. (3) Whe…

§ 70. Assumption of debt obligations

(1) In the assumption of the debt obligations for the state, there shall be ensured the ratio of the financial risks and expenses related to the debt obligations, which would comply with the ability to perform the debt obligations of the state both in the short and long term. (2) The Ministry of Finance shall be permitted to assume the debt obligations for the state within the maximum permitted balance of the debt o…

§ 71. Stabilisation Reserve Fund

(1) The Stabilisation Reserve Fund shall mean the financial reserve formed from the state funds in order to finance such expenditure, investments and financing transactions, which objective is: 1) the reduction of economic risks; 2) the prevention or mitigation of socio-economic crises; 3) the resolution or prevention of an emergency situation, a state of emergency, a state of war or other extraordinary situation or…

§ 72. Administration of Stabilisation Reserve Fund

(1) Administration of the Stabilisation Reserve Fund is the keeping and investment of the funds of the Stabilisation Reserve Fund. (2) The administration of the Stabilisation Reserve Fund shall be organised by the Ministry of Finance. (3) The objective of the management of the Stabilisation Reserve Fund is to increase the value and maintain sufficient liquidity of the fund of the Stabilisation Reserve Fund in the lo…

§ 73. Use of funds of Stabilisation Reserve Fund

(1) A resolution on the use of the funds of the Stabilisation Reserve Fund shall be adopted by the Riigikogu on the proposal of the Government of the Republic. After the adoption of a resolution, the Government of the Republic shall submit to the Riigikogu a draft supplementary budget or a draft state budget amendment. The legislative proceeding of a draft supplementary budget or a draft state budget amendment shall…

§ 74. Reporting on Stabilisation Reserve Fund

(1) The Ministry of Finance shall, not later than on the tenth working day of each quarter, submit a report to the National Audit Office, the Government of the Republic and the Finance Committee of the Riigikogu on the composition and value of the assets of the Stabilisation Reserve Fund as at the last working day of the previous quarter. (2) The report specified in subsection 1 of this section shall set out at leas…

§ 75. Supervision over implementation of state budget

The Ministry of Finance shall monitor the implementation of the state budget and provide an overview thereof to the Government of the Republic at least twice a year.

§ 76. Financial control system

(1) The financial control system is part of the internal control system, which comprises the planning, use and monitoring of use of the budget funds of a state authority. The objective of the financial control system is to ensure the economical, efficient, effective, legitimate and transparent use of the state budget funds. (2) The head of a state authority shall be responsible for the implementation and efficiency…

§ 77. Annual reports of state and auditing thereof

(1) The annual reports of the state shall mean the annual reports of the National Audit Office and the consolidated annual report of the state. The reports shall be prepared according to the Accounting Act. [RT I, 30.12.2015, 4 – entry into force 01.01.2016] (2) The National Audit Office shall perform the audit of the annual accounts constituting part of the consolidated annual report of the state. The National Audi…

§ 78. Submission, audit and approval of annual report of state accounting entity

[Repealed – RT I, 30.12.2015, 4 – entry into force 01.01.2016]

§ 79. Audit and submission to Riigikogu of consolidated annual report of state

(1) The Ministry of Finance shall submit the consolidated annual report of the state to the National Audit Office not later than by 30 June of the year following the accounting year. The report submitted to the National Audit Office shall be published on the website of the Ministry of Finance immediately after the submission of the report. In the course of an audit, the Ministry of Finance may correct and amend the…

§ 80. Implementation of §§ 20, 48 and 60 of this Act

(1) A regulation issued on the basis of subsection 2 of § 10 of the State Budget Act in force until the entry into force of this Act shall be effective shall be effective after the entry into force of this Act in so far as it is not in conflict with this Act, until the revocation thereof by a regulation specified in subsection 5 of § 20 of this Act. (2) A regulation established on the basis of subsection 4 of § 48 o…

§ 81. Special rules related to state budget for 2014

(1) As of the entry into force of this Act, subsection 12 of § 2 and §§ 4, 6–10, 12, 14 and 16 of the 2014 State Budget Act shall not apply. (2) The maximum permitted total balance of the debt obligations of the state specified in subsection 2 of § 69 of this Act in 2014 shall amount to 2,500,000,000 euros. (3) The maximum permitted balance of loans and state guarantees granted by the Government of the Republic and…

§ 81 1 . Special rules related to state budget for 2020

(1) Subsection 5 of § 33 1 of this Act shall apply for the first time with regard to the 2020 State Budget Act. (2) The wordings of § 25 1 , subsections 1, 2, 3, 5 and 6 of § 26, subsections 2 and 3 of § 29, § 30, subsections 2 and 3 of § 31, subsection 4 of § 32, §§ 33 1 , 34, 34 1 , 34 2 and 35–37, subsection 3 of § 38 and subsections 1 and 1 1 of § 58 of this Act entering into force on 1 January 2020 shall apply…

§ 81 2 . Establishment of support measures for alleviation of crisis relating to spread of coronavirus causing COVID-19 disease

(1) The general conditions for the support measures established due to the emergency situation on the basis of § 53 1 of this Act shall be established by a regulation of the Government of the Republic. (2) The minister shall establish the support programmes due to the emergency situation on the basis of § 53 1 of this Act in adherence to the general conditions referred to in subsection 1 of this section. [RT I, 21.0…

§ 81 3 . Establishment of support programmes for alleviation of crisis relating to spread of coronavirus causing COVID-19 disease

(1) The general conditions of the support programmes for alleviation of crisis relating to the spread of coronavirus causing COVID-19 disease shall be established by a regulation of the Government of the Republic. (2) The minister shall establish the support programmes for alleviation of crisis relating to the spread of coronavirus causing COVID-19 disease in adherence to the general conditions referred to in subsec…

§ 81 4 . Special rules related to state budget for 2022

The wordings of subsections 5, 7 and 8 of § 26 of this Act entering into force on 15 December 2021 apply for the first time with regard to the classification of the state budget for the year 2022. [RT I, 07.12.2021, 1 – entry into force 15.12.2021]

§ 81 5 . Special rules related to state budget for 2025

(1) Subsections 5 1 , 5 2 and 8 of § 26 of the wording of this Act adopted on 20 November 2024 apply with regard to the breakdown of the state budget for the year 2025. [RT I, 19.12.2025, 1 – entry into force 29.12.2025] (2) Subsection 5 of § 58 of the wording of this Act which entered into force on 29 December 2025 applies for the first time with regard to the state budget for the year 2025. [RT I, 19.12.2025, 1 –…

§ 81 6 . Special rules related to state budget for 2026

(1) Subsections 5 1 and 8 of § 26, subsections 1, 2 2 and 2 3 of § 56 and subsection 1 of § 58 of the wording of this Act which entered into force on 29 December 2025 applies for the first time with regard to the state budget for the year 2026. (2) Domestic support is planned in the state budget for 2026 in accordance with the guidelines for the preparation and submission of a draft budget strategy for the area of g…

§ 81 7 . Special rules related to granting domestic support

(1) The domestic support provided in this Act is planned for the first time in the state budget for 2027 by the types of support provided in this Act. (2) The granting of domestic support without a basis deriving from this Act or another legal instrument and the granting of domestic support on the basis of this Act is brought into conformity with the wording of this Act which entered into force on 29 December 2025,…

Subchapter 2 Amendment and Repeal of Acts

§ 82. – § 125. [Omitted from this text.]

§ 126. Entry into force of Act

(1) Subsection 3 of § 47, subsections 4–6 of § 48 and § 49 of this Act enter into force on 1 January 2015. (2) Subsections 2 and 3 of § 50 and § 51 of this Act enter into force on 1 January 2017. [RT I, 21.06.2016, 1 – entry into force 01.07.2016] (3) Sections 108 and 120 of this Act enter into force on 1 January 2019. (4) Subsection 3 of § 48 and § 110 of this Act enter into force on 1 January 2020. [RT I, 21.06.20…