Government reached agreement on second supplementary budget for 2002
The Finnish Government proposes that additional appropriations worth 97 million euros in net terms be allocated to the second supplementary budget for 2002. This brings total appropriations for 2002 to 35,2 billion euros without the repayments of central government debt.
In net terms the Government's revenue estimates are revised upwards by 324 million euros. Estimates for tax revenues are revised downwards by 532 million euros. The net estimate for other revenues is up by 856 million euros.
Estimated revenues from income and property tax are down by 605 million euros. Municipalities will receive an additional amount of approximately 400 million euros according to tax equalisation calculations. It is estimated that taxes at source on income from interest will be 50 million euros higher than initially calculated, while revenues from inheritance and gift tax look set to rise by 67 million euros. Revenues from tobacco tax are expected to rise by 54 million euros, those from taxes on alcoholic beverages by 49 million euros. Estimates for revenues from the tax on motor vehicles are revised upwards by 63 million euros.
The Government proposes that an additional 228 million euros be allocated for purposes of central government debt repayments. This would bring the total figure for net debt redemptions in 2002 to 618 million euros. A total of 362 million euros have been budgeted for government debt servicing aimed at reducing future interest outlays. It is estimated that at year-end 2002, central government debt will stand at 60.6 billion euros, representing 43.2 per cent of GDP. Excluding revenues from the sale of capital assets, the ratio of government debt to GDP would be 48.1 per cent.