The total amount of the draft budget is EUR 63.2 billion.
Treasury has completed its proposal for next year’s state budget.
The total amount of the budget proposal is 63.2 billion euros, the Ministry of Finance says in its release. The proposal is in deficit of EUR 6.7 billion. Borrowing will decrease from the budgeted for 2021 by EUR 7.6 billion. Tax revenues are forecast to grow by about 6.2 percent from what was estimated in the fiscal plan in the spring.
“Rapid economic growth and the end of corona measures will reduce the deficit”, Minister of Finance Annika Saarikko (Central) said at a news conference. HS shows the current event live.
According to him, right now the economic situation looks good. However, good economic growth seems to remain a growth spurt. Growth then threatens to slow to between 1% and 1.5%.
“As such, it is not enough to respond to the problems that have become permanent in Finland’s public finances,” Saarikko said.
Ministry of Finance the proposal is the basis for the whole government to discuss in its negotiations, the so-called budget debate, in early September.
The budget proposal is based on the decisions of the spring framework debate.
“Virtually all expenses and euros were allocated already during the spring,” Saarikko said. According to him, funds could no longer be allocated to new expenditure.
“The margin was and is very small.”
Among other things, the proposal introduces a two-year experiment with household deduction, which increases the deduction for domestic work and care work. The ceiling is increased to EUR 3,500 and the reimbursement percentage from 40 to 60%. With regard to the replacement of oil heating, the household reduction will also be increased for 2022–27.