Finland’s government prepares budget as economy returns to growth

Finland’s government is preparing next year’s budget with economic indicators moving back toward growth, but the improvement has not changed its plans to keep previously agreed cuts.

Prime Minister Petteri Orpo and the coalition’s leadership group, Finance Minister Riikka Purra, Education Minister Anders Adlercreutz and Agriculture and Forestry Minister Sari Essayah, had already negotiated decisions before the formal budget talks began.

The government’s main decisions are expected to follow the framework agreed during its spring budget negotiations. Ministers say public finances remain tight because of rising interest costs on government debt, sharply increased defense spending and healthcare costs. The state budget deficit is estimated at about 12 billion euros.

One measure that has tested the coalition’s unity concerns grants for social and health organizations. Reports said 40 percent of the organizations were at risk and about 1,400 jobs could be affected. The government’s leadership group was due to comment on the budget talks in a live broadcast.