Government decides on General Government Fiscal Plan for 2026–2029

The General Government Fiscal Plan guides the planning public finances. It covers central government, wellbeing services counties, municipalities, statutory earnings-related pension funds and other social security funds.

The Government decided on the General Government Fiscal Plan on Wednesday 30 April. The plan defines objectives for the development of public finances and measures to achieve those objectives. It includes a decision of the spending limits for central government finances and presents the Government’s key tax, expenditure and structural measures.

The plan is based on the latest independent economic forecast produced by the Economics Department at the Ministry of Finance. The forecast just published by the Economics Department includes only the direct effects on public finances of the growth measures decided in the Government’s mid-term policy review session. The growth measures are not included in the forecast of economic growth, because the forecast was made before the decisions of the mid-term policy review session. The impact of growth will be accounted for in the next round of forecasts.

General Government Fiscal Plan includes spending limits decision

The plan estimates that next year’s on-budget activities will comprise:

• revenues of  EUR 83.0 billion excluding net borrowing 
• expenditures of EUR 90.0 billion 
• a deficit of EUR 7.0 billion.

The balance of the 2026 Budget will be improved by non-recurring factors. 

The plan includes a decision on the spending limits for central government finances, in other words, it sets the maximum expenditure allowed under the spending limits. The plan will be used as the basis for next year's national budget. 

Finland to submit annual progress report to EU

The General Government Fiscal Plan meets the EU’s requirement for a medium-term fiscal plan. The Government approved Finland’s progress report as part of the General Government Fiscal Plan.
 
In January, the Council of the European Union approved Finland’s first medium-term fiscal-structural plan for 2025–2028. Finland submits an annual progress report on the plan to the EU.

Materials of the Government’s mid-term policy review session to be published

Minister Sanni Grahn-Laasonen led a group that negotiated the package of growth measures decided in the Government’s mid-term policy review session. The Ministry of Finance will publish the materials that it provided to support the work of the group.

Inquiries:
Mika Niemelä, Director General of the Budget Department, tel. +358 295 530 525, mika.niemela(at)gov.fi
Jussi Lindgren, Special Adviser to the Minister of Finance, tel. +358 50 576 4611, jussi.lindgren(at)gov.fi
Marketta Henriksson, Head of the Secretariat for EU Affairs, tel. +358 295 530 441, marketta.henriksson(at)gov.fi
Lauri Kajanoja, Economic Policy Coordinator (impact calculations of the measures of mid-term policy review), tel.  +358 295 530 554

The appeddix file Memorandum on the impact calculations of the Government's mid-term policy review package has been updated on May 6 2025. The example of the impact of the reduction of corporate tax was edited for clarity.