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Parliament approved the state budget for 2025

Published 12/20/2024 12:10 PM

Parliament approved the state budget for 2025

Parliament completed the single reading of the 2025 budget on 20 December. The reading was based on the Finance Committee's report. All the main titles of expenditure of the budget were approved in accordance with the Committee's report. At the end of the budget consideration, there was also a vote of confidence in the Government. The Government enjoyed the confidence of Parliament by a vote of 97-70.

The Finance Committee's proposal for the state budget for 2025 is approximately 89.2 billion euros, which is about 1.3 billion euros more than the actual budget for 2024. The increase in appropriations is explained by, among other things, the retrospective adjustment of funding for wellbeing services counties and index adjustments. On the other hand, government reforms and spending cuts reduce the level of expenditure.

The Committee emphasizes that the share of wellbeing services counties is nearly 30 percent of the state budget. The difficult situation of public finances requires adjustment measures to secure the welfare society and its services, and wellbeing services counties also play a key role in this context.

The state's budgetary revenues, excluding net borrowing, are estimated to be around 76.7 billion euros, of which tax revenues are approximately 67.2 billion euros. The goal of tax policy is to improve purchasing power, enhance work incentives, and strengthen the conditions for economic growth.

The state budget is approximately 12.5 billion euros in deficit, which will be covered by borrowing.

The Finance Committee has increased the budget expenditures by 50 million euros, which will be allocated to, among other things, reducing the repair debt of transport routes, strengthening national defence and overall security, enhancing skills, and promoting outdoor activities and nature recreation.​

Categories
Budget; Plenary session