Orpo Government: Finnish economy growing and Government taking targeted measures to boost growth

On 1 September 2026, the Government of Prime Minister Petteri Orpo reached a decision on its budget proposal for 2027 and is steadily implementing the agenda it agreed at the spending limits session. The agenda includes EUR 100 million of investment in construction and numerous transport infrastructure projects. The Government’s targeted measures will support economic growth.

“Economic growth increases confidence in the future. We hope that it will already have an impact this year and help more people in Finland find work. During this parliamentary term, we have made a significant number of decisions that strengthen Finland’s competitiveness and improve the conditions for entrepreneurship, investment and growth. In the spring, we drew up a new agenda for ourselves, and we are now delivering on it,” says Prime Minister Petteri Orpo.

Finland’s economy and output are growing, and the outlook for businesses and households has brightened.

People in Finland have seen their purchasing power increase throughout this parliamentary term. Domestic demand will receive a boost next year from a EUR 230 million reduction in taxes on labour. The tax cut is aimed mainly at low and middle income earners.

The increase in the tax credit for household expenses agreed in the spring spending limits session, which will take effect retroactively this year, will continue in 2027. It will encourage people to purchase services that make everyday life easier, such as cleaning and care services.

The reduction in the corporate tax rate to 18 per cent, which supports self-employment and growth, will enter into force at the beginning of next year. The ability of start-ups and high-growth enterprises to attract and retain talent will improve when the taxation of employee stock options changes from the beginning of next year. The period for deducting business losses will be extended from the current 10 years to 25 years.