Cross-cutting review of entire public sector needed to strengthen public finances

Political decision-makers will be faced with numerous important decisions in the coming years as they seek to respond to evolving global challenges and build a better future. The Ministry of Finance’s strategy is to ensure that Finland remains a stable and sustainable society for future generations. The Expenditure and Structural Survey and Tax Survey offer a variety of concrete options for ensuring the sustainability of public finances. The public sector’s financing base cannot sustain its current functions General government expenditure as a share of GDP has been higher than revenue since 2009. This means that the public sector’s financing base has been insufficient to sustain its functions in their current form without a high level of indebtedness. The high level of debt increases debt servicing costs, which further accelerates indebtedness. “Finland has many strengths to build its future on, and the solutions are fortunately still in our own hands. Public finances are in a weak state. We have not been bold enough over the past decades in making reforms and prioritising what we use our shared resources on,” said Director General of the Budget Department Mika Niemelä. Finland ...