The Finnish economy is slowly recovering from recession, with weak employment and economic uncertainty keeping households cautious. The general government debt ratio will stabilise briefly, but not permanently, at the end of the parliamentary term, estimates the Ministry of Finance in its forecast published on 22 September.
The Government of Prime Minister Petteri Orpo has reached a decision on its budget proposal for 2026. The Government’s decisions aim to support economic growth, which is picking up. Supporting economic growth and continuing responsible fiscal management is necessary to ensure the security of people in Finland and safeguard their access to important services going forward.
The Ministry of Finance's draft budget for 2026 implements the guidelines of the Government’s spring mid-term policy review and includes the Minister of Finance's new adjustment measures proposed by the Minister of Finance to ensure that the debt ratio stabilises towards the end of the parliamentary term. The draft budget totals EUR 89.6 billion and involves a deficit of EUR 9.9 billion. When entering as revenue a one-off revenue item from the National Housing Fund, the deficit amounts to EUR 7.6 billion.
On Friday 25 July, the Fitch credit rating agency lowered the rating of Finland’s central government debt by one grade from AA+ to AA. Finland’s outlook is now rated as stable.
Publications
State Budget 2025
The central government's appropriations in the budget proposal total EUR 88.8 billion. Revenue is estimated at EUR 76.6 billion. The budget proposal shows a deficit of EUR 12.1 billion.
The Finnish economy is slowly recovering from recession. The general government debt ratio will stabilise briefly, but not permanently, at the end of the parliamentary term.
The Ministry is tasked with establishing, overseeing and reforming the operating framework for public finances and public governance. Our vision is to establish a solid foundation for the economic prosperity and wellbeing of coming generations.
