Finland's public sector is facing a significant challenge in sustaining its current functions due to a high level of indebtedness. The country's general government expenditure has exceeded revenue since 2009, resulting in a substantial debt burden.
What happened
The Ministry of Finance has conducted an Expenditure and Structural Survey and a Tax Survey to identify options for ensuring the sustainability of public finances. The surveys provide a range of alternatives for adjustments, including changes to public expenditure and tax measures.
According to Director General of the Budget Department Mika Niemelä, Finland has the strength to build a better future, but public finances are in a weak state due to a lack of bold reforms and prioritization of shared resources over the past decades.
The necessary adjustments are estimated to be around EUR 8-11 billion in the next parliamentary term, requiring decision-makers to carefully consider a comprehensive package of measures to strengthen public finances.
The Expenditure and Structural Survey examines general government finances, including central government administration, wellbeing services counties, municipalities, and social security funds, and presents a wide range of options for adjustments and their estimated impact on public finances.
