The draft budget of Minister of Finance Riikka Purra for 2027 will enable growth and implement previously decided fiscal consolidation measures

The draft national budget of the Minister of Finance for 2027 will implement policies agreed in the spring spending limits session. The budget proposal totals EUR 92.2 billion, envisioning a deficit of EUR 12.9 billion.

The projected deficit is EUR 0.5 billion smaller than the current year after including the second supplementary budget for 2026. The estimated deficit for 2026 disregards non-recurrent revenue recognition arising from abolition of the National Housing Fund, which will have no impact on borrowing. The draft budget will be released in full at budjetti.vm.fi on Thursday 6 August.

“The economic outlook is currently quite favourable, notwithstanding the difficult state of public finances. Finland's economy has grown briskly for three consecutive quarters, with growth strengthening in all main sectors. Exports, order books, investment and business confidence are on the rise, fostering a strong and encouraging outlook," explains Minister of Finance Riikka Purra.

Previously decided fiscal consolidation measures to be included in the draft budget

At its spring spending limits session, the Government decided on austerity measures totalling approximately EUR 540 million by the year 2030. These savings will replace individual previously decided savings from social and healthcare services, and measures that affected revenue. Public sector austerity measures will also finance investment and growth measures that were decided in the spending limits session. The savings decided in the spending limits session will total some EUR 391 million in 2027.