The Finnish government is set to achieve its objective of reversing the debt trajectory before leaving office in 2019, says Petteri Orpo (NCP), the Minister of Finance.
“It currently does indeed seem that the debt trajectory will be reversed by , meaning that public debt will no longer be growing in relation to gross domestic product,” he stated to members of the media after the first day of the two-day budget talks of the Ministry of Finance on Tuesday.
Orpo predicted that the budget deficit will be “quite a lot smaller” than this year already in 2018 before being wiped out completely in 2019.
The improved outlook is a consequence of the rapid, broad-based economic growth that has gained momentum in the first half of the year and, partly, of the fiscal austerity exercised by the government, analysed Orpo.
The government, he said, is not intent on stopping borrowing altogether or re-considering its frugal approach to public spending after reversing the debt trajectory. Any extra leeway in the budget will be used to cut back on borrowing rather than to make new investments and, thereby, raise fixed public expenditures.
Aleksi Teivainen – HT
Photo: Vesa Moilanen – Lehtikuva
Source: Uusi Suomi