Parliament approves €89.2b budget for 2025 with €12.5b deficit

The ​​​Parliament on Friday approved the government budget proposal for the year 2025, said an official press release.

The budget of 89.2 billion euros, which is about 1.3 billion euros more than the actual budget for 2024 was passed by 97 votes to 70.

The state budget is approximately 12.5 billion euros in deficit, which will be covered by borrowing.

Earlier on the day, the parliament completed the single reading of the 2025 budget and the reading was based on the Finance Committee's report.

All the main titles of expenditure of the budget were approved in accordance with the Committee's report.

At the end of the budget consideration, there was also a vote of confidence in the Government.

The increase in appropriations for 2025 is explained by, among other things, the retrospective adjustment of funding for wellbeing services counties and index adjustments.

On the other hand, government reforms and spending cuts reduce the level of expenditure.

The Committee emphasizes that the share of wellbeing services counties is nearly 30 percent of the state budget. The difficult situation of public finances requires adjustment measures to secure the welfare society and its services, and wellbeing services counties also play a key role in this context.

The state's budgetary revenues, excluding net borrowing, are estimated to be around 76.7 billion euros, of which tax revenues are approximately 67.2 billion euros.

The goal of tax policy is to improve purchasing power, enhance work incentives, and strengthen the conditions for economic growth.

The Finance Committee has increased the budget expenditures by 50 million euros, which will be allocated to, among other things, reducing the repair debt of transport routes, strengthening national defence and overall security, enhancing skills, and promoting outdoor activities and nature recreation.​

Earlier in September, the components of the four-party alliance government led by conservative Kansallinen Kokoomus (National Coalition Party-NCP) agreed on the draft budget for the year 2025.

On August 8, the four-party alliance right-wing published the draft budget of EUR 88.1 billion for 2025 with a deficit of EUR 12.2 billion.