Public finance | Orpo: More adjustments are coming, the 6 billion target is not enough

Orpo did not present any concrete new means of adaptation.

Prime minister Petteri Orpon (kok), the government will make more decisions to adjust the public finances during the spring budget rush. Orpo spoke about it in his speech at the party council meeting on Saturday.

Budget manager of the Ministry of Finance Mika Niemelä estimated in December that there would be a need for further adaptation between half a billion and a billion.

Orpo did not present any concrete new means of adaptation.

“There is no rabbit to pull out of the hat that would fix the situation.”

According to Orpo, a working group has been assembled from the representatives of the government parties, whose task is to find a political consensus on the adjustment. The working group is chaired by the chairman of the parliamentary group of the coalition Matias Marttinen.

During the government negotiations, it was decided that the public finances must be adjusted by 6 billion.

“Based on last spring's economic forecasts, we estimate that this is enough to turn the tide. Now we know that this is not the case,” Orpo said at the party council.

Municipalities are threatened with a funding shortfall of several hundred million euros due to the complex transfer of money related to social security reform. Orpo said that they are not ready for this, because it would automatically mean a cut in education. The deficit must therefore be compensated from the state's pocket to the municipalities. In practice, this means that the public finances must be adjusted to the same extent from somewhere else, through cuts or tax increases.

In any case, adjusting the economy requires at least two terms of government, Orpo said.

Orphan also brought up the situation on the eastern border in his speech. The entire eastern border is currently closed by the government's decision, but this week there has been news about crossing the border via terrain. On Thursday, 11 Iranian men crossed the eastern border in this way.

Orpo said in his speech that the government is prepared for the situation to continue, and if necessary, the government is ready to take “additional measures”.

“We will not be helpless,” Orpo said.

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