At the framework session, the Finnish government will set aside more than EUR 2 billion for defense

At the framework session, the Finnish government will set aside more than EUR 2 billion for defense

“The government has decided to make significant investments in military defense, border security and cyber security. We are also doing everything we can to help the people who come here from Ukraine, he summed up.

The decisions represent a deviation of about two billion euros from the framework set by the government itself. The borrowing required by the expenditure increases will lead to a fluctuation of the general government deficit between EUR 6.7 and 7.6 million in the coming years.

the Treasury minister Annika Saarikko (Center) recalled that the national economy is currently being burdened by the adverse effects of both the coronavirus pandemic and the war in Ukraine. According to him, the effects of the war are long-lasting and could worsen the economic situation, especially if Finland or the EU bans energy imports from Russia.

The government decided that the operating costs of the Defense Forces should amount to EUR 130–200 million per year and the procurement of materials to a total of EUR 1.5 billion for 2023–2026.

The decision is in line with the funding request submitted by the Defense Forces and the Ministry of Defense.

The Border Guard will receive EUR 163 million for the acquisition of surveillance aircraft due to the changing security environment and more than EUR 115 million in additional funding for essential costs in 2022-2026. It also receives a share of the investment in beef. increase cyber security capabilities.

Minister of Justice Anna-Maja Henriksson (SFP) revealed that about 780 million euros will be set aside next year for the refugee crisis triggered by the war in Ukraine. The funding gap is based on the assumption that 60,000 temporary protection and 6,000 asylum applications will be left in Finland in 2022 as a result of the war.

“About 16,000 Ukrainian citizens have applied for international protection from Finland since the Russian invasion,” he said.

“By the end of June, the government will evaluate the necessary additional decisions and changes to the law to guarantee the services of persons enjoying temporary protection and the requirements of the law of the municipality,” he said.

The government announced that it would raise social benefits linked to the national pension index, such as the national pension and guarantee pension, unemployment security, basic income support and student support, to address the concerns of low-income households in an inflationary environment.

The sharp rise in energy prices has been the primary driver of inflation, indirectly raising the cost of other commodities in addition to housing and mobility. In February, consumer prices were roughly up 4.5 percent higher than a year earlier.

– According to preliminary estimates, the gross amount of labor market support and basic income support, for example, could increase by EUR 20-30 as a result of this index increase, the Minister of Education said. Li Andersson (LA).

Andersson also welcomed the decision to increase core funding for vocational training by € 50 million from next year, which will allow for the permanent recruitment of vocational tutors and teachers.

The government also canceled the € 350 million cut in research funding it announced a year ago and agreed to introduce a tax rebate of around € 100 million to encourage corporate research projects from next year.

Aleksi Teivainen – HT

Source: The Nordic Page

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