Prime Minister Petteri Orpo's (NCP) coalition government presented a supplementary budget to parliament on Thursday, which called for borrowing another 1.5 billion euros this year to cover a decline in state revenues as the economy stutters.
The proposal also includes plans to expedite the construction of an eastern border fence, targeted measures for the construction sector as well as increased support for Ukraine.
The need for appropriations increased by just under 0.2 billion euros, while actual revenues are expected to decrease by 1.3 billion euros.
This borrowing is to cover the shortfall in the 2024 budget. Government parties are to discuss more austerity measures for the 2025 budget this spring, because of the same economic difficulties that have hit Finland since the government programme was announced last summer.
Finland's economy contracted by 0.5 percent last year, hitting tax revenues as economic activity declined. Forecasts suggest recovery will be slow in 2024.
In total, Finland will need to borrow approximately 12.9 billion euros this year.
Orpo's National Coalition Party was voted into office on promises of fiscal austerity.
Trade unions are meanwhile continuing a series of political strikes aimed at getting the government to reverse course on a raft of labour market reforms currently going through parliament.
All Points North looks into Finland's latest wave of political strikes and asks where unions, employers and the government go from here. Listen to the episode via this embedded player, on Yle Areena, via Apple, Spotify or wherever you get your podcasts.
Users with an Yle ID can leave comments on our news stories. You can create your Yle ID via this link. Our guidelines on commenting and moderation are explained here.
