On Wednesday, the Finnish government announced an expenditure package for 2021, which will increase employment, promote climate goals and increase spending to deal with the bills caused by the coronavir crisis.
prime minister Sanna Marin announced on Wednesday an agreement on the 2021 state budget after lengthy negotiations between various departments of the five-party coalition government.
“This budget has been drawn up in the midst of an exceptionally serious health and economic crisis, and there is still a lot of uncertainty next year. The budget as a whole has to be an incentive,” Marin said at a press conference on Wednesday afternoon.
The party leaders ’controversy focused on measures to boost employment and help industry while also fighting climate change, and trade is priced: the budget deficit in 2021 will be € 10.8 billion, about € 3.8 billion higher than the deficit originally proposed. Treasury. The total expenditure now planned for 2021 is EUR 64.2 billion.
Expenditures include money to reduce daycare fees, a municipal support package and spending to improve employment services – as well as a whopping € 1.4 billion in coronavirus testing.
A trade-off between carbon neutrality
Carbon neutrality was one of the main issues in the negotiations, and the Green Parties wanted to reduce the burning of peat into energy.
In Finland, the state strongly supports industry, which accounts for about 11 percent of the country’s carbon dioxide emissions, but it also increases the economy in the country’s rural areas, and is therefore strongly supported by the Central Party.
The government announced a compromise to double the tax on peat incineration and introduce a minimum energy price to encourage a shift from peat. Minister of the Interior Maria Ohisalo said at a news conference on Wednesday that the energy tax on peat will rise by € 2.70 per megawatt hour.
At the same time, Minister of Science and Culture and Chairman of the Center Party Anikka Saarikko said the government will add 31,000 to 36,000 new jobs instead of the 30,000 it originally promised as part of the budget.
He proposed to achieve this goal by using € 70 million to improve services for jobseekers and another € 70 million to reduce daycare fees from August 2021. The government also pledged to raise the age of primary education to 18 at a cost of € 22 million and to support free secondary education from autumn 2021.
Minister of Education Li Andersson said that one of the measures to support municipalities in financial difficulties includes a one – off increase of EUR 300 million in state aid to local government. In addition, they would receive a temporary 10% increase in state tax revenue, among other things.
Andersson said the government will also provide € 450 million over three years to cancel the care debt caused by the coronavirus crisis.
The government estimates government revenue to be € 53.4 billion, of which € 45.2 billion will come from taxes. Public debt is estimated to rise to 135 billion euros next year.
Source: The Nordic Page