The government is preparing a fourth supplementary budget to reduce net borrowing

The government has submitted to Parliament this year’s fourth draft supplementary budget, which aims to reduce the need for net borrowing by about EUR 2.2 billion.

The draft proposal includes an increase in revenue of approximately EUR 1.9 billion and a cut in expenditure of EUR 249 million.

According to the government, changes in the budget are necessary, as the Finnish economy has recovered from the interest rate crisis faster and faster than expected.

"Economic growth has recovered relatively strongly since the coronavirus pandemic, which is also reflected in government tax revenues," the government report states.

This year’s estimates of tax revenue will thus increase by about 1.5 billion euros, of which 1.2 billion will come from income and capital income taxes.

However, tax revenues from tobacco and motoring are lower than expected.

More money for the police, the border guard

On the expenditure side, the draft amending budget includes more than EUR 30 million for the Finnish police force and also fills a gap in the revenue of the state gambling monopoly Veikkaus.

In addition, the Border Guard will receive additional funding of EUR 65 million for the acquisition of two patrol vessels, which will increase the total value of the acquisition to a maximum of EUR 325 million by 2026.

The previous budget allocation was insufficient to cover procurement, mainly due to rising prices for raw materials and components.

According to the government’s proposal, the amount of the government’s net loan this year is 11.7 billion euros and the government debt is estimated to be about 136 million euros by the end of this year.

Source: The Nordic Page





Related Posts