Politics
Tools
Typography
Petteri Orpo (NCP), the Minister of Finance, discussed the Ministry of Finance’s budget proposal for 2018 in a press conference in Helsinki on 9 August, 2017.
Petteri Orpo (NCP), the Minister of Finance, discussed the Ministry of Finance’s budget proposal for 2018 in a press conference in Helsinki on 9 August, 2017.

 

Petteri Orpo (NCP), the Minister of Finance, has revealed that raising the employment rate remains a top priority for the government as it has not improved as much as the government would have wanted.

Finland’s employment rate is currently projected to have crept up to 70.2 per cent by the time the government leaves office in 2019.

Ministry of Finance’s draft budget for 2018:

  • The Ministry of Finance unveiled the outlines of its draft budget for 2018 on 9 August, 2017.
  • The budget appropriations amount to €55.4 billion, €400 million less than the appropriations for 2017.
  • The draft budget shows a deficit of €3.4 billion, signalling a marked decrease from the deficit for 2017.
  • Government debt is consequently expected to rise to €111 million in 2018.
  • Government revenue is projected to be €52 billion.
  • Tax revenue is projected to grow 3% year-on-year to €43.3 billion.

“That’s not high enough,” Orpo admitted after the second day of the two-day budget talks of the Ministry of Finance on Wednesday.

Orpo argued that more resolute measures to raise the employment rate are required as a higher employment rate would have a positive impact on the public economy, public well-being and the debt burden of Finland.

“We have to encourage wage moderation,” he said.

The Ministerial Committee on Economic Policy will according to him weigh up a number of measures to improve the employment situation in the weeks leading up to the budget session of the government.

Finland, he reminded, is currently on a robust growth path and, while it should not get ahead of itself, there will be a need for additional recruitments in the next phase if the efforts to maintain demand prove successful. In that event, the jobs would be created precisely where they should be, according to Orpo.

He also estimated that the effects of the competitiveness pact will have to be offset with further reductions in income tax rates in light of the government’s promise to ensure the tax burden will not increase for any earners in any income bracket.

“There’s no way we can propose a tax solution that would only lower taxes for high income earners. We’re preparing a just and well-balanced solution,” he promised.

The Ministry of Finance is scheduled to publish its budget proposal in full on Thursday.

Aleksi Teivainen – HT
Photo: Roni Rekomaa – Lehtikuva
Source: Uusi Suomi

Finland in the world press

Helsinki Finland Partly Cloudy (day), 5 °C
Current Conditions
Sunrise: 8:16 am   |   Sunset: 5:52 pm
78%     6.3 m/s     34.643 bar
Forecast
Sat Low: -1 °C High: 5 °C
Sun Low: 0 °C High: 3 °C
Mon Low: 0 °C High: 3 °C
Tue Low: 1 °C High: 3 °C
Wed Low: 2 °C High: 3 °C
Thu Low: 1 °C High: 4 °C
Fri Low: 1 °C High: 5 °C
Sat Low: 1 °C High: 5 °C
Sun Low: 3 °C High: 5 °C
Mon Low: 3 °C High: 5 °C

Partners