Public finances|Additional income is generated from the increase in the tobacco tax.
The government the third supplementary budget for this year will improve the balance of the state’s budget economy and reduce the state’s need for net borrowing by approximately EUR 967 million, says the Government in its announcement.
The proposal increases state revenues by 525 million and reduces expenditures by 442 million.
Additional income will accrue, for example, from the tobacco tax increase coming at the beginning of November. In total, the increase in tax revenues is estimated to bring 143 million euros to the state coffers.
The government’s net borrowing this year is estimated at 11.8 billion euros, and the amount of government debt is estimated to rise to 168 billion at the end of the year.
Appropriations needs are reduced because some expenses are postponed. For example, 436 million euros from the procurement allocation for multipurpose fighter jets will be transferred to 2028. In addition, the government estimates that less money is needed for EU membership fees, EU structural funds and government interest expenses than previous estimates.
The additional expenses include, among other things, compensation for the support given to Ukraine, NATO’s peacetime tasks and funding for Finland’s NATO integration. Additional funding is also promised for the Border Guard and the protection police.
In addition to these, the state finances space situation center establishment and is preparing to finance the capital of the Architecture and Design Museum Foundation.
The State Council gave the supplementary budget proposal to the parliament on Thursday.
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