Bringing Finland’s public finances onto a different path has proven more challenging than expected. The Government is planning major cuts in public expenditure, but the level of public spending in the immediate years ahead will nevertheless still exceed public revenues.
In recent years, Finland’s public finances have shifted from one crisis to the next. The debt ratio has grown almost without interruption since the global financial crisis. Halting the accumulation of further debt in the immediate years ahead would aim to give sufficient room for manoeuvre in future crises and for coming generations.
Fiscal buffers should be accumulated when the economic situation is relatively bright. This would help to reduce the sustainability gap in the public finances and improve readiness for future recessions.
According to the Bank of Finland’s assessment of the country’s public finances, the growth in public debt is a cause for concern. Finland’s long-term outlook for growth is weak, and expenditure is increasing apace.
This website saves on your device small data files known as cookies. These are divided into essential cookies and statistical ones. Essential cookies are always operational, as they allow use of the site and ensure data security.
The site does not use any cookies that identify the user.
Select ‘Approve cookies’ or click ‘Edit cookie settings’, read the additional information and tailor the cookies to your preferences.
Essential cookies enable the website’s data security and basic functions such as navigating around the site and the search function. Essential cookies do not gather any data that can identify a user of the site.
Statistical enhancement cookies help us develop the site to meet users’ needs. They gather data on e.g. users’ terminals, site visits and time spent on the site. Statistical cookies do not gather any data that can identify the user.